The objective is simple - Collect all 100 Gold Tokens. Remember that Bungalow no longer jumps as high, and avoid enemies as best as you can, since they respawn constantly. Once all 100 Gold Tokens have been collected, a door will appear, which leads back to the main lobby and relinquishes Bungalow of his nightmare.
An easy way to go through this nightmare is to either pick up all the Gold Tokens as fast as you can at the base floor and then go climb as high as you can and lure the enemies to the lower levels. Once they are all at the bottom level, you can pick up the rest of the Gold Tokens. Or the other option is to use the Freeze Gun to stall them. In Viggo's Revenge, the Chameleons and Cows, however, do not respawn infinitely, so it is advised that you take them out before they plague you.
Bungalow is fully aware that his strength is in his physical power and abilities. He feels insecure about being left with a task that requires a lot of thinking (such as locating all the Gold Tokens), and worries that someday he'll need to do more than use just brute strength.