About what's happening:

Pico fades away from memory and gets automatically sent to the Forgotten Place, where characters go when they aren't popular or remembered.

Pico isn't happy about this, obviously, because he was replaced by Tankman. He frequently marches around the place angrily.

That is, until Boyfriend and Girlfriend come in to get him out, since characters that are NOT in the Forgotten Place can get those trapped inside out. At first Pico wasn't convinced that they actually wanted him, but he accepted their help eventually and they finally got out of that place.

Music is Daisy Bell, sung by the IBM 7094