For this first episode of the second season, the production shifted from New York to Hollywood Center Studios in California and a new, expanded set was built which led to this "redecorating" theme. Almost certainly the change in production location was the cause of many non-puppet cast changes as many were likely unwilling to relocate. Gilbert Lewis was replaced by William Marshall as King of Cartoons and the role of Dixie (portrayed by Johann Carlo) was discontinued. The character Captain Carl was also discontinued; Phil Hartman had been hired by Saturday Night Live (1975) about the same time as he started with the production of this series. Shirley Stoler's role as Mrs. Steve was replaced by Suzanne Kent's Mrs. Rene and Roland Rodriguez's role as Tito was replaced by Vic Trevino's Ricardo (introduced as "the greatest athlete who ever lived"), who often speaks his lines in Spanish and English to help Pee-wee learn Spanish. The 'Playhouse Gang' (usually three children known as Opal, Elvis and Cher) no longer appear, and new friends of the playhouse include Clockey, Floory, and Pee-wee's ventriloquist dummy Billy Baloney.
With Dixie gone starting with this episode, the King of Cartoons is introduced by way of song by the Flowers. Instead of the King carrying a film projector to present the cartoon, he now uses a vintage TV set.
Beginning with this episode, Pee-Wee now wears a helmet while riding the scooter after the helmet law passed in California. Previously, to open the door where his scooter is stored, he tilted an iron on an ironing board; now he twists a rotating arm on a replica of the famous statue of the Discus Thrower (Discobolus of Myron, Greece, V century B.C.E.). When he leaves, he flies over Mount Rushmore before hitting the road. Further down the road, Pee-wee rides past the Pink Motel, a landmark built in 1946 on San Fernando Road (U.S. Route 99) in Sun Valley, California, and now used only as a filming location.
From this point on, Pee-wee's foil ball gag was replaced with his rubber-band ball gag. He explained to Ricardo that he could no longer keep the foil ball in the playhouse because it got so huge, so he donated it to the Foil Museum.
Because the playhouse had to be remodeled, this is the only time the full theme song was not used.