Did this really happen??
In the plot section of the Wikipedia page (and the synopsis on here, but it's the same word for word so one was taken from the other) it says this happens:
"The next day Fred is so captivated by Mr. Devlin that he has another one of his infamous "Fred flashbacks/daydreams". This time Fred imagines himself engaged in a homo erotic fantasy whereras Mr. Devlin is sucking Fred's neck engorging himself with his sweet and tantalizing blood. Realizing this is taboo, and against his whole moral code, Fed snaps out of his daydream and runs down the street screaming his trademark high pitch/girly like scream absolutely disgusted with himself."
Maybe it's just worded very... 'sweet and tantalizing', but that just sounds extremely unlikely, not to mention the 'against his whole moral code/disgusted with himself' anti-gay-ish message that I doubt Nickelodeon would put forth.