Werner Klopek, Art snoops around the Klopeks' backyard and is chased out by a large dog. While the Petersons and Rumsfields meet Hans, Reuben, and Dr. Ray's wife Carol, tired of the men's behavior, organizes a welcome visit to the Klopeks. Ray and Art theorize that the Klopeks may have used Walter as a human sacrifice, becoming further convinced when Ray's dog digs up a human femur from along the Klopeks' fence line. Ray collects the dog, leaves a note for Walter, slips the toupée back in through the mail slot, and sees one of the Klopeks watching him from their house. Worried about the elderly man, Ray, Art, the Rumsfields, and teenage neighbor Ricky Butler enter Walter's house and find overturned chairs and Walter's toupée, but no Walter. Mark's wife Bonnie finds their neighbor Walter's dog running loose. In the morning, Ray, Mark, and Art search the garbage truck for human remains after the Klopeks' trash is collected, but find nothing.

Later that night, during a rainstorm, Ray sees the Klopeks digging in their backyard.

On another night, they observe the youngest Klopek cart an oversized garbage bag to their curbside garbage can and aggressively mash it down. Ray and his other neighbors-Art Weingartner and Vietnam War veteran Mark Rumsfield-gradually suspect the Klopeks may be ritualistic murderers. Late one night, he hears strange noises coming from the basement of his new and reclusive neighbors, the Klopeks. Suburban homeowner Ray Peterson is home on a week-long vacation.

Innerspace soundtrack