[1] Ten-year-old George (Nathaniel Moreau) lives in a dilapidated home near the Halifax Harbour with his grandfather Captain Waters (Ian Bannen).
When she discovers that Captain Waters has a fondness for grog, she reports the family to Mr. Droonfield (Maury Chaykin) at Child Services.
While Mr. Droonfield determines a course of action, George is temporarily placed with a foster family, the Beanes (portrayed by Brian Downey and Irene Hogan) who keep him locked up in a basement cell.
Miss Birdwood and Mr. Droonfield give chase, but they accidentally awaken the ghosts of Captain Kidd (Gary Reineke) and his men, who think that the intruders are after their chest of gold.
Local maritime folklore holds tales of pirates seeking revenge over buried treasure stolen from the island.