It turns out that everyone in "The Colony", where Karen is sent to recuperate after her werewolf scare, is also a werewolf. Karen's husband (Bill) gets bitten, and in turn bites Karen during her harrowing escape. To warn people, Karen returns to her TV anchor job, turns into a werewolf on camera, and has her friend Chris kill her with a silver bullet. At a bar, some people watching TV have mixed reactions to Karen's transformation (some think it's real and some don't). A man orders a steak for a woman.. and it's Marsha (Eddie's sister) who survived the fire at The Colony...
Trivia: Many shortcuts had to be taken due to the incredibly tight budget. For example, the infamous final shot of the sex-scene being hand-drawn animation was done because the crew ran out of time and money and couldn't get the shot done in live-action. Additionally, Karen's final transformation was not seen, and her transformed face is only seen in extreme closeup because the effects crew ran out of money and could only afford to make a small puppet head for the scene.TedStixon
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