Nilbog was an American town on the planet Earth. It was home to the Goblins. The Goblin species would convert human beings into vegetable matter, so that they could be classified as "vegetarians". Because they didn't get a lot of visitors, they maintained a farming community here, only eating what they grew from the land. That, and people.
Eventually, Joshua Waits and his family came to vacation in Nilbog, and with the help of his phantom Grandfather, they managed to escape the town, while killing most of the Goblins. Unfortunately, his mother Diana Waits was subsequently killed and eaten by surviving Goblins.
Also, Nilbog is Goblin backwards.