Horace Hobart is the new kid on the block in New York City and he's scared. His sister warns that the scary Purple Falcon Gang is going to cream him. He puts on his wild uncle's dragon jacket, covers a sty with an eye-patch and swaggers out. Through an amazing coincidence in the first hour of school, he takes the name ACE and fools the Falcons. Then Ace falls for Raven, the Falcons' beautiful buddy. Looking tough now, he's recruited to act in a low-budget film and gets parts for his new friends. During a night shoot, one of the Falcons disappears when the Piranha Gang disrupts the filming....