Project Squidboat was a collaboration set up by Drill. Runt and Emerald were sent to investigate "mob psychology", presumably because of their recent bad behavior. They went outside the wall and followed Drill's instructions. Drill told them to do the following:
Build a weird house:
Under insistance from Emerald, Runt built the weird house. He built a house with "a sand floor" and "cactus pillars". According to Runt, Drill, upon seeing the house, "had a smile so big it was as if he had just drank a Potion of Smiling V". The mobs destroyed it no time flat.
Build a beautiful house:
Emerald took care of this. She built a house with flowers and a sign that said no zombies. The mobs came, stopped to read the sign, and destroyed it.
After that Drill said they could come inside, however Runt had something he wanted to try. He asked for a stack of obsidian, and after Drill reluctantly gave it, he got to work
The Obsidian Cube
Main article: Obsidian Cube
Runt built a 5x5x5 obsidian cube to see how the mobs would react. the mobs tried various methods, to no avail. The Cube became a popular thing to watch for the inhabitants of Villagetown. As Runt said, "the whole village was on the wall". This part was created by Runt, rather than Drill.