The formula that worked so well in Children Shouldn't Play with Dead Things is trotted out again in Bloodbath in Psycho Town. A motion-picture production crew, comprised largely of jerks and satyrs, descends upon a small town. As the crew members try to film a horror flick, they are picked off one at a time by a mysterious hooded killer. There's every indication that the film-within-a-film will end up better than what we're actually seeing. Look at the title, and guess what you're in for in the last reel.