"Dag" is an Australian term for filthy wool on the hindquarters of a sheep. It also is a slang term for an uncouth person. Therefore this film is a look at several uncouth individuals. The men are all beer drinkers and dopers who wear Hawaiian shirts, long socks, and sandals. The women are all in tank tops and hot pants and constantly after sex, but never enjoy it. One of the men gets a wild idea to get in the Guiness Book of Records by having one of his mates rob his video store every night. During one of these robberies, the robber "kidnaps" a customer and begins a romance. Meanwhile all of the other "dags" are sleeping with one another behind each other's backs.
When guardian angel Seth -- who invisibly watches over the citizens of Los Angeles -- becomes captivated by Maggie, a strong-willed heart surgeon, he ponders trading in his pure, otherworldly existence for a mortal life with his beloved.
When teen-socialite Kelly Van Ryan (Richards) and troubled bad girl Suzie Toller (Campbell) accuse guidance counselor Sam Lombardo (Dillon) of rape, he's suspended by the school, rejected by the town, and fighting to get his life back.
Having never fully recovered from a prom date that became a total disaster, a man finally gets a chance to reunite with his old prom date, only to run up against other suitors including the sleazy detective he hired to find her.