We open on Dr Horrible updating his blog, he is practicing his memorable laugh for the delight of his viewers, every super-villian needs a memorable laugh, and this one, which he has been working on with a voice coach, is going to help him get into the Evil League of Evil. He moves on to reading his emails through which we learn that his transmatter gun is at 75% (the matter turns slightly liquid when being transported), that the status is not quo, the freeze is almost done, his nemesis is Captain Hammer (and not John Snow) and he is in love with Penny, the girl he sees in the Laundromat but hasn't been able to work up to speaking to her yet.

His musings on Penny are interrupted by Moist (his evil moisture buddy) who arrives with his rather soggy mail which includes a letter from Bad Horse, the leader of the Evil League of Evil. Bad Horse tells him that his application has been received and he is under evaluation. As Dr Horrible is about to pull a major heist, the timing is just perfect.

Out in the street, Penny is trying to get people to a sign a petition to save a building when she literally bumps into Dr Horrible who is mid-heist. Having thrown his Horrible van remote on to the top of the van carrying the Wonderflonium he requires to complete his Freeze Ray, the doc is frantically messing with the remote control when Penny approaches him to sign her petition. Keeping one eye on the van, he signs the petition. As he does the driver approaches the van with the box of Wonderflonium and puts it in the back of the van, the doc activates the remote and the van sets of sans driver (after niftily changing into his Dr. Horrible costume of course).

Unfortunately, Captain Hammer is on hand to save the day, jumping on the van, he smashes the remote and sends the van hurtling towards Penny. Seeing Penny in the way, Hammer and Horrible both leap into action, Hammer pushing Penny into some garbage out of the way of the van whilst Horrible frantically presses the brake on his remote control. It works just in time to make it look like Hammer stopped it with his bare (or rather gloved) hands.

Just as Captain Hammer is about to show Dr Horrible the curtains, the lacy, gently wafting curtains, Penny gets up from the garbage to thank her hero. As Captain Hammer and Penny sing lovingly into each other's eyes, the doc relunctantly leaves them to it, making off with the Wonderflonium.

Balls.