In the not too distant future the government is hard at work in a Nebraskan facility, trying to create a zirus to re-animate corpses, to try to build an army of zombie soldiers. You see George Bush has been just elected as President for the fourth time [his vice president is Arnold Schwarzenegger] so the USA is at war with most of the world, leading to a shortage of soldiers.
But this experiment naturally goes wrong, so it's up to the Z squad to come in and tidy up the mess in the facility. One of the squad members is bitten by a zombie during the clear up, but rather then fess up and wait around for his colleages to kill him, he escapes and hides out at illegal strip club Rhino.
The dying soldier then infects the star stripper Kat (Jenna Jameson) meaning she too becomes a zombie. So club owner Ian (Robert Englund) does what anyone would do in this situation - keeps the club open and if customers should be infected he just locks them in the basement.
The film really gets going as the other strippers slowly get ideas as they see how much money zombified Kat is raking in as the elite Z squad hunt down their missing member...