Episode 2 of the Naruto anime series starts off with Naruto taking a bizarre photo for his ninja registration. Clueless as to what is expected of him in the photo, the photo is later returned by the Hokage. Dispite the Naruto oriented beginning, this episode mainly focuses on Naruto meeting Konohamaru, the grandson of the Third Hokage.
After realizing that Naruto does not treat Konohamaru like everyone else in the village, Konohamaru decides to adopt Naruto as his “boss”, which is met with much dismay by his tutor. Naruto reluctantly takes Konohamaru under his wing and begins teaching him about “Catcha”, which we soon find out to be the mispronounced word for “Chakra”. Konohamaru is most interested in learning Naruto's sexy no jutsu, where he transforms himself into a beautiful, and normally nude, version of himself as a distraction technique.
First, Naruto tries to get Konohamaru to “henge” (Japanese for “transform”) into a pretty local woman. The transformation is performed unsuccessfully and Naruto gets all of the blame as the woman attacks him for the misshapen version of her. Next Naruto takes Konohamaru to a local bookstore and they flip through a magazine of girls in bathing suits. As soon as they are not aware, the store clerk gives Naruto another mild beating for looking at magazines that he's not supposed to. For Naruto's last lesson, he takes Konohamaru to the woman's public bath. Naruto is recognized soon after entering and is given his third beating for the day. It's safe to say that Naruto is quite the pervert for a 12 year old.
Details of Naruto's past are explained in this episode, including how he became the Kyubi (9 tailed fox beast) and why everyone looks at him so coldly. There is also a hint to who Naruto's father is, something that will not be disclosed until way farther on into the manga series. All in all, you are given a pretty good idea as to why life has been so hard for Naruto.
Winding down towards the end of this episode, Naruto realizes that him and Konohamaru are not so different. Konohamaru is looked at differently by the entire village just because he is the grandson of the Third Hokage. The episode ends with Konohamaru announcing that him and Naruto are now rivals since they both desire to become Hokage. This sudden change from friends to rivals is also due to Naruto saying that Konohamaru will have to beat him to become Hokage. Either way, Konohamaru will look up to Naruto many episodes into the future, and they will form a relationship that will last through the entire anime and manga series.