Marcy's shop, the Seven-Year Stitch, is one year old this October so it's time to party in little Tallulah Falls, Oregon. Aside from the Halloween decorations and festive stitching kits and patterns, Marcy's got all sorts of celebratory swag, including Seven-Year Stitch key rings and goodie bags. Unfortunately, her new neighbors might spoil the revelry. An eccentric couple has opened a haunted house next door, and all that screaming will certainly scare off customers. But there's even more to be frightened of after a local waitress is found dead on the sidewalk with mysterious markings on her neck.