Armed with nothing more than twigs, their imaginations and a simple set of rules, a group of 12-year-olds engaged in a lively game of Capture the Flag in the neighborhood woods start dangerously blurring the lines between make-believe and reality. Paint-filled balloons = Grenades. Trees = Control towers. Sticks = Sub-machine guns. The youthful innocence of the game gradually takes on a different tone as the quest for victory pushes the boundaries of friendship. The would-be warriors get a searing glimpse of humanity's dark side as their combat scenario takes them beyond the rules of the game and into an adventure where fantasy combat clashes with the real world.

Following a prologue set in war-torn former Yugoslavia, the film follows several different Christmas celebrations in the small Norwegian town of Skogli. Paul is a thirty-three-year-old laborer who marches into his doctor's office demanding a prescription, then proceeds to lay bare all his woes. The doctor is beleaguered by his own marital and financial difficulties (he's left his upset wife to work emergency calls on Christmas Eve). There's also an elderly man preparing an esoteric ritual, a vagrant who runs into an old flame, a middle-aged couple in the throes of passion, a boy hopelessly in love with his Muslim neighbor and a young émigré couple whose car breaks down as the woman goes into labor.