While trying out for a spot on the National Volleyball Team, Tiffani realizes that her small size is keeping her from being the best. Sly suggests that Tiffani takes steroids to make her bigger and stronger. The band soon realizes that Tiffani is addicted to them. Sam and Lorena also have a studs contest featuring Tony, Sly, and Mark as contestants to see which one of the guys is the best with the ladies.
Lorena makes a bet with Jake that greed can rip apart friendship, even the band's friendship. Lorena and Jake create a plan to make the gang believe that there is buried treasure hidden nearby. Lorena's right- friendships start to get strained. Both Jake and Lorena end up surprised at the extent of everyone's greed.
An old friend from Tony's childhood, Darren, pays a visit to Tony. He aks Tony to help out one of their friends from a gang that he's joined. The friend ends up in the hospital and Tony has to decide if he should help get revenge on the gang. The rest of the band takes a job delivering singing telegrams.
The new guy at school, Tommy Keating, bad-mouths Jake around the school. After Tommy challenges Jake to a motorcyle race, Jake accepts. After hitting a speed bump at Sharkey's, Jake crashes his bike and doesn't compete in the race, resulting in being accused of being a coward. Tony and Sly also become school safety monitors.
Jake enters a motorcycle contest and Uncle Frank pays a visit to help Jake win the competition. Uncle Frank gets Jake hooked on smoking. The whole gang thinks that smoking is a bad idea, especially Lorena. She threatens to not date Jake anymore if he doesn't quit. The band also finds a box filled with money on the beach. Mark is left in charge of it and Sly thinks investing the money in a get-rich-quick program is a good idea.
The gang is assigned a school project to research their family tree and give a report. Tony isn't able to find anything about his family past the Civil War. Embarrassed, Tony lies about his family's background. Sly and Mark give a speech about their ancestors who had the Winkle charm, and try to use it on girls.
Not wanting her dad to be alone, Tiffani sets her father, Paul, up with marine biologist Ariel. This turns out to be a bad idea when Tiffani's dad spends all his time with Ariel instead of Tiffani. Mark creates a compatability test that claims that Tony and Sam aren't compatabile as well as Jake and Lorena. The couples start arguing over the results.
The band must work on a project for school, creating their own television shows. Tiffani and Mark partner up to create ""Ms. Smith's Neighborhood"", which is a cross between a surfing show and ""Mr. Roger's Oceanside."" Jake, Lorena, and Sam partner up to create ""Hall Monitors,"" a take-off on ""Cops."" While Sly and Tony create ""The Goo-Ga-Moo Guys,"" a ""Wayne's World""-type show for guys that are interested in girls. ""The Goo-Ga-Moo Guys"" becomes a hit show on a local station and Sly quits being manager of the band. However, Sly and Tony's friendship gets strained over greed.
It's time for another battle of the bands. This time the California Dreams are against the rap group Total Defiance. Managed by Rosie, Sly in the form of a girl. After Total Defiance says that Lorena is just a groupie, she wants to join the band. When she auditions, the band realizes that she can't sing at all. They don't want to hurt her feelings and tell her, especially Jake.
Sly's trying to find a date for the Romance Dance at school. So, he heads online and meets a girl, Allison, on the online chat room ""Comp-U-Chat"". When he finally meets her, he finds out that she's blind. After seeing Sly's good luck getting a date, Tony and Sam decide to give ""Comp-U-Chat"" a try for themselves.
Everyone takes a career aptitude test at school that will tell them what career would be perfect for them. Mark a guidance counselor, Sam a photographer, Tiffani a veteranarian, Jake a florist, and Lorena and Sly both a fashion designer. In trying to get a date with Lorena, Sly copied off of her test so that they would have more in common with each other. While Jake has trouble writing a new song, he decides to work on his new florist career.
After the Garrison family moves away, including Matt, Sam moves in with Lorena Costa. The band also get to use her place to practice from now on. Unfortunately, all their equipment is at a pawn shop and they have to get it back. They also need to find a replacement for Matt. Sly thinks that his cousin, Mark, might be right for the job, but Mark has had a bad case of stage fright ever since Sly embarrased him at Carnegie Hall.