Caboose is jealous of the relationship between Lopez and Sheila, who are now refusing to work due to perceived poor treatment by the soldiers — that is, being repeatedly blown up, possessed or left outside to rust. Eventually, they consider forming their own robot army. At the Red Base, Sarge sends Grif and Donut out to try to spy on the Blue Team. While on the mission, Grif, who cannot stand Donut's childish behavior, tricks him into exploring the caves by himself. Donut then spots Doc and O'Malley talking to each other, in the manner of Gollum and Sméagol in The Lord of the Rings. Overhearing O'Malley's evil plans, Donut tries to return to his base, only to become lost and eventually captured at the Blue Base.

As a note, "Nut. Doonut." — a reference to James Bond's introduction, "Bond. James Bond." and use of two 0's in his agent number, 007 — is the episode title as listed on the Rooster Teeth website and on the Red vs. Blue: Season Two DVD. However, the six versions downloadable from the Internet show different titles, each another reference to the James Bond series (specifically, the six starring Sean Connery): "Blunderball" - Thunderball, "Dr. No-No" - Dr. No, "You Only Spawn Twice" - You Only Live Twice, "From Blood Gulch With Love" - From Russia with Love, "Dummies Are Forever" - Diamonds Are Forever, and "Pinkfinger" - Goldfinger.