Essentially, Larry is captured by "amazonian warrior women" from a distant planet. They brainwash the perennially behind-the-times loser into believing he's in a disco paradise. Then, they plan to use Larry to father a race of alien-human hybrids to take over the earth. "When he finally woke up, he realized: he had to figure out what was going on, find a way to stop the invasion and literally save the planet!"
So why didn't this happen? Sierra tried to hire Lowe to design the game with only a promise that a contract would come later. Considering that the last thing we heard about Al Lowe was that his Sam Suede was being worked on again (without him), and without his knowledge, we believe he was right to be suspicious.
[Via Big Download]