The game follows Shaggy and Scooby as they must find clues and trap pieces to complete the levels. Velma, Fred and Daphne assist them.
The player's life is not actually lost, when Shaggy is scared enough times, he leaves the area and the player must restart again. The fright can come from simple things, such as the opening of a mummy's case or complex dangers, like a moving dinosaur display hitting the player. 'Courage' can be restored by finding food to eat, such as in a cafeteria or in Scooby Snacks lying on the ground.
A familiarity with 'reality' of the television show helps, as in one instance, the player must hide -inside- the 2-D reality of a painting in order to escape a villain.
Villains: Black Knight, Snow Ghost, The Witch Doctor and the game exclusive Ghoul King.
Source: Wikipedia, "Scooby Doo! Classic Creep Capers," available under the CC-BY-SA License.