In the first episode in the Chillogy miniseries, "Squeal of Fortune", Jessica Walters finds the Karlsville model in her attic. She is transported to Karlsville when she uses her finger to touch a miniature payphone in the town. While in Karlsville, Jessica is offered the opportunity to sell lemonade by Karl, the owner of Karlsville. In a scene shortly after this one, it is revealed that Karl has the power to control the weather in Karlsville.
Jessica begins selling lemonade to many thirsty townspeople. However, after enacting several unfair business strategies, the people of Karlsville turn on Jessica. As Jessica runs away from the crowd, it is easy for the viewer to see that many elements of the town are clearly meant to replicate the 1950s and 1960s; the cars have fins and the townspeople wear vibrant retro clothing.
Jessica escapes by going back to the payphone that she had touched earlier. She calls her cellphone, which she left in the attic, and her brother answers. Immediately after her brother answers, Jessica is teleported back into her attic.
In the second episode, "Strike Three... You're Doomed!", Matthew Erikson sees a miniature baseball rolling through the model town's baseball field. Matthew touches the ball, and he is teleported onto Karlsville's baseball diamond. Matthew meets Karl Knave, and Knave convinces Matthew to play baseball for his team, the Karlsville Krunchers
Matthew approaches home plate, preparing to play. He asks where the other players are, and a massive automatic pitching machine rises from the ground. Matthew manages to hit a ball, and he runs to first. The pitching machine tries to attack Matthew, but Matthew makes it to second base. The base disappears and the ground opens up beneath Matthew. Now, Matthew must walk across a narrow strip of dirt and avoid falling into the lava below in order to get to home.
Matthew complains that there are no other players, so Knave introduces Matthew to two more players. However, these players are monsters. The monsters get Matthew into a rundown, but Matthew makes it to home. Upon touching home plate, he is teleported home. Jessica visits Matthew's home, and she is shocked to see that he has Karlsville. The two agree that they should retrieve some tools and destroy the miniature town. The two kids leave Matthew's room, and Matthew's younger brother enters.
Karlsville includes several services and places of business, many named after the town's founder and mayor.
The Cuckoo Clock of Doom
Little Brats Toy Store
Chiller's Ice Cream Parlor
A tall sign next to the parlor's entrance reveals some of the flavors sold there.
Hair Raiser's Beauty Salon
Killman's Fine Meats
Karlsville Warehouse and Cold Storage
Karl & Jessica's Special Lemonade Stand
The Karlsville Bijou Movie Theater
Karl's Kameras Komics Kards
Ghastly Gas and Autos