Buddy is desperate to win back the affection of his wife and approval of his twin daughters, who just haven't bought into the whole house-decorating festivities as much as he'd hoped. Steve is convinced that Buddy is out to get him - and things come to a head when he finds that Buddy has been stealing his electricity to help power his lights.
The women have had enough of the rivalry, and decide to rent a motel room for the night.
Buddy and Steve finally see eye to eye and team up with a plan to win back the women. Little Carter opens the door to the motel room to find a path illuminated with Christmas lights. With questioning it, all the others leave the warmth of the room and follow the path all the way through town before it leads back to their neighborhood, where Buddy and Steve are waiting in the kitchen with a nicely cooked Christmas meal, and apologise for forgetting the true meaning of Christmas.
Meanwhile, outside, others have followed the line of lights and show up outside of Buddy's home -- which is looking a little normal now. They all demand to see the show - but he has to turn them away. His family give-in and tell him to put on some of the lights again as the TV cameras have shown up ... but the power is out and everyone sighs in disappointment.
Buddy's wife picks up a candle and starts mingling with the neighbors as she belts out a carol. Candles are handed out and everyone has a good sing. The TV reporter is close to tears. Suddenly little Carter realises that the plug wasn't correctly fitted and pushes it back in place -- and the lightshow starts up again to everyone's delight.
Buddy and Steve wrap things up, where Buddy admits that he did some things just to annoy his neighbor. Steve doesn't rat him out to Oprah and they decide to start over again. So basically it's all been a complete waste of time. And electricity.