Nancy Sans

On a special inner city street, the inhabitants—human and muppet—teach preschoolers basic educational and social concepts using comedy, cartoons, games, and songs.

Elmo's back in Grouchland to sing some of his favorite songs with his new friend Grizzy. There's just one problem - Grouches aren't supposed to cooperate, so Grizzy won't sing along!

Telly feels left out when all the other kids at Gina's day care are going to the circus and lies that his uncle is a ringmaster. After Gina reads the story of "The Boy Who Cried Wolf," Elmo has a dream of the story where the boy learns his lesson. When Telly's uncle (Dennis Quaid) drops in for a surprise visit, Telly admits the truth.

Elmo is trying to make a Top Ten Countdown list for the radio station, but everyone keeps trying to share their favorite song with him. Meanwhile, Telly can't decide on his favorite song -- is it "The Alphabet Song", "Twinkle Twinkle Little Star" or "Baa Baa Black Sheep"?