In this part of the story, the characters are being introduced. George, Lydia, Peter, and Wendy who live in a HappyLife Home. The house does everything for them. The nursery is a room that can put them wherever they want in the world and can change depending on what the children are thinking of.
The conflict is that the nursery is not working properly and the kids would not stop changing the room to a death scene with lions in africa.
George and Lydia are in the nursery and feel scared in the room with lions. After their experience, George wants to shut down the house for a few days because he feels like he doesn't belong there and the kids are being spoiled.
Peter begs George not to lock up the nursery. George catches Peter saying that him and his sister have been conjuring up Africa. Peter threatens his father after being told that his parents are thinking of shutting down the house.
George calls a psychologist over to see why the kids are acting strange. After George unplugs all the electronics, Peter and Wendy get upset and cry. Peter tells his dad that he hates him and yells at the nursery to not allow this to happen.
The resolution for Peter and Wendy was to lure their parents into the nursery and have the lions eat them so they could continue living with the house taking care of them and enjoying the nursery.