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Newlyweds Jack and Peggy, frustrated by living in separate rooms in a boardinghouse, buy a dilapidated houseboat. At first they think that their only problems are leaks, peeling paint, and run-down equipment. They soon find, however, that Watson, a boorish yachtsman who owns the moorings, is demanding an exorbitant rental fee. After Peggy has decorated the barge with curtains and plants, Jack decides to take a trip down the Thames for a second honeymoon. Also aboard are Jack's bachelor friend, Sid, and Sid's stripteaser girl friend, Sandra. Hampered by a rusty motor, a faulty compass, and a heavy fog, the little craft crosses the English Channel and ends up in Calais, where French authorities deny the group permission to disembark because they have no passports. The sneering Watson is also there with his yacht, but he refuses to lend Jack food or fuel for the return trip. Sandra, however, distracts Watson's crew with a striptease while Jack and Sid take the necessary supplies. On the return voyage, Watson challenges Jack to a race, the stakes to be double rent or no rent for a year. Fortunately, Watson's Irish skipper, O'Malley, gets so drunk that he steers the yacht off course, and the old houseboat wins the race.