Ning Tsai-Shen, a humble tax collector, arrives in a small town to carry out his work. No one is willing to give him shelter for the night, so he ends up in the haunted Lan Ro temple. There, he meets Taoist Swordsman Yen Che-Hsia, and the beautiful Nieh Hsiao-Tsing, with whom he falls in love.
It's been many years since Freddy Krueger's first victim, Nancy, came face-to-face with Freddy and his sadistic, evil ways. Now, Nancy's all grown up; she's put her frightening nightmares behind her and is helping teens cope with their dreams. Too bad Freddy's decided to herald his return by invading the kids' dreams and scaring them into committing suicide.
Ryoko Itakura is a government tax agent who has just landed a big promotion. Her first assignment is to catch wheeler-dealer Hideki Gondo. She has a tough job, since in Japan tax evasion is an art and Gondo is, in effect, Rembrandt. Her job is complicated by a growing sympathy for the rogue and by political pressure to lay off.