The event known as the Llama Incident is one adventure that Milo and Melissa experienced before meeting Zack. This event is mentioned in the episodes The Undergrounders, Rooting for the Enemy, The Note, Murphy's Lard, We're Going to the Zoo, Battle of the Bands and - of course - The Llama Incident.
In the year 2000, a man from Boston inherited lots of llamas from a llama farm owned by his dead uncle. So he bought a 99-seat theater. Fifteen years later he had a whole line of theaters with his llamas as the actors.
While Milo and Melissa were watching a production of Llamlet, the llama playing Laertes wandered of-stage and pulls a rope with his mouth resulting is sandbags falling and startling all the llamas. Then they all run off-stage. While Milo is putting his backpack back on, it gets caught on the leg of a llama. The two chase those llamas out of the theater and all over town - including through a production of Swan Llama - resulting with other llamas joining the stampede. The next stop was through a 2016 graduation ceremony, where one llama ate a girl's diploma. The stop after that was a salon where they all got their fur styled and hooves painted. They finally end up on a huge cargo ship. Milo and Melissa miss the boat but hang on the the chain connected to the boat's anchor. From there they get onto the boat. The chase continues on the boat until it arrives at a same-height ice berg. Milo finally manages to retrieve his backpack at the foot of a polar bear, from which he takes out a tee-shirt cannon of knock-out gas to render the attacking polar bear unconscious. With the bear they frightened the llamas the other way. Then they used a llama-pulled dog sled, an airplane, and public buses to get back to Swamp City.After they got back to town, Milo decided to get them to their respective theaters by luring them with a bag of pistachios from his backpack. Then a bird makes a Lard World sign fall and makes Balthazar Cavendish's and Dakota's big tube of pistachio gelatin fall and the treat lands on Melissa, resulting in the llamas chasing her. She runs right into a Geckos vs. Tigers football game with the llamas hot on her trail. Then Milo runs in paying admission for the two. The running all around the game went on for hours. After one member of the Geckos' band obtains a giant spool of wire, one of the llamas rolls it down the stairs of the bleachers. Then the wire rolls up the stairs on the other side of the field and over the wall. A nearby truck pulls away with the spool pulling it straight and high above the ground. With Melissa still partly covered in the goo, Milo takes two seatbelts out of his backpack, uses one to strap himself to a llama while riding it to get high enough to tie the other to the wire. Melissa grabs that belt. Melissa grabs that one and the wire swings her up and she lands standing on it like a tightrope - with the treat flying of her and the llamas chowing down on the ground - and catches a flag a cheerleader looses. Then Milo tells Diogee (in Spanish) to tell the llamas to gather under Melissa for her to jump onto to land softly. She does and comments on how soft they are.