Jeannie's young nephew Daniel is troubled by events at his boarding school following the death of a teacher, Mr. Dawkins and passes a note to Jeannie voicing his suspicions that Dawkins was murdered, as well as the previous school nurse. Jeff and Jeannie investigate by securing work at the school, respectively as teacher and nurse, following Marty's elimination of the other candidates.
The militaristic headmaster Captain Graves seems the most likely suspect for any wrongdoing, but it is soon discovered that his only crime is having an affair with the Matron, Harriet Banks-Smith. Said Matron is in fact to blame for the crimes, forming the red blazer wearing prefects into a cult which eliminates all opposition to her affair, namely Dawkins for spreading gossip about the affair and Nurse Leath, who was sweet on the Headmaster. When Graves objects to her behaviour, she tries to decapitate Jeannie, but is startled by Marty possessing the head of Mr. Dawkins, and accidentally immolates herself.