The first arc made me sick to my stomach - but I think eating while watching this stuff was a bad idea all around.

Thanks for the clear up darknodin, I thought it was a flashback, but I guess they're doing some different scenarios entirely. I'd have to agree that the switch from cute to crazy is really disturbing. It kind of bugs me though how Keichii instead of him asking, waits for someone to tell him why this town is crazy.