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This is a movie which seems to flip back and forth between "serious horror movie" and "Army of Darkness style movie." Most of the "monsters" in this movie look like Todd McFarlane had the idea "Hey, I could make Muppets."
Old woman kills herself, and her divorced writer nephew inherits everything she owns and decides to auction it off. Nephew gets writers block about his new Vietnam book and decides to move in. Nephew has flashback about his son's "drowning/kidnapping" at aunt's house. Nephew meets neighbors: stereotypical blonde ditz (BD) and stereotypical overweight single guy (OSG). OSG tries to be nice, gets cold shoulder, doesn't give up. Nephew hears noise upstairs and goes to investigate. Nephew finds horrible stick puppet in closet and gets attacked. Nephew starts acting like a little kid who's convinced there's a monster under the bed. OSG calls Nephew's Beautiful Ex-Wife (BEW). Man gets attacked by she-monster and shoots it, only to find it was really (not quite) BEW. Cops arrive, cops leave, she-monster rises from a shotgun blast and beats the hell out of Nephew, who somehow decapitates it. We then get to see Nephew bury the creature's head while "You're No Good" plays as background music. While preparing to bury she-monster's body, SBD arrives and sets up one of the funniest scenes in the entire movie. When SBD begins conversing with Nephew, She-monsters hand grabs hold of Nephew's ankle. He's trying to play it off and act cool until the hand starts to move toward SBD's ankle at which point he jerks forward to step on it, bringing himself inches from SBD. SBD looked rather happy about this, which is surprising considering the fact that Nephew had a frantic, "Everybody's out to get me," look on his face. SBD walks off, at which point Nephew begins beating she-monster's body with a shovel. So, to sum all this up, here's what we've got: she-monster gets shot and keeps going, she-monster gets DECAPITATED and keeps going, and Nephew thinks, "Gee, maybe if I whack it with this shovel it'll stop moving!"
Some random stuff happens, we meet some more McFarlane Muppets, Nephew's old army buddy tries to kill him, Nephew finds his son, we all get the happy ending.
Scene to watch for: Sandy with the she-monster.
Best line: "It's a raccoon. A BIG raccoon."
Things that make you go "Huh?": Why, after the first night there, Nephew has FOUR trashbags full of garbage.