She has two vampire strippers, Sugar and Spyce, who help her procure victims. But Sugar is really a good vampire who has fallen in love with a mortal. Morella warns her off mortals as she once loved a mortal who cheated on her. But she got him back by turning him into a little creature that she keeps in a cage in her room.
Not a good movie by any means, the puppet in the cage is fairly useless. It just makes little whiny noises and at one point manages to crawl up on the bed with naked chick about to be killed. From the ending and the video of behind the scenes, the film makers were way too enamored with the rutting puppets. It's probably only funny if you're there when they film it... and maybe even that is giving them too much credit.