Mr. Hankey reveals that he has not surfaced due to issues with his family: his dissatisfied alcoholic wife Autumn, and their children (which he calls "nuggets") Cornwallis, Amber and Simon.
With backing from Mayor McDaniels, worried about South Park's economic state, the boys set about using cut-out animation to create their cartoon.
After Cartman accidentally destroys a frame of the cartoon and quits the project, and Kenny is run over by a car, Stan and Kyle proceed with the project themselves, with Stan dubbing Cartman's voice over (taking extra opportunities to poke fun at his weight in the meantime), Kenny being killed off in the cartoon as well, and sending their cut outs to get made in South Korea.
Finally, the film is ready and the whole town gathers to see it, including Cartman, who joins in getting credit for the movie, and claims he never quit in the first place.
As everyone sits at home, forcing the children of South Park to celebrate a Christmas with no presents, Cornwallis and Mr. Hankey fix the projector and the film restarts playing.
Finally content, the boys head off to open their presents, turning down an offer to make a TV series out of their film.
[1] "A Very Crappy Christmas", along with the sixteen other episodes from South Park's fourth season, were released on a three-disc DVD set in the United States on June 29, 2004.