As we know Ghost Just wanna Dance and here is a cool trick to do that while waddling :) How to do the Special Dance?
1. Go to Gariwald’s Ghost Lab
2. Have ONLY a Boom Box added to your avatar :)
3. Step into the Ghostamatron
4. Click on “d” or Dance while being transformed…
CONGRATS you are still a Penguin and you can dance while waddling around :) Thanks Rakd1 for telling me about this :)

…I have done some tests around this FUN Bug :) If you click on Transform back into a Penguin…

…You will find that the Ghost Maker Machine has messed up your molecules…

…If you want to be a SCARY Dancing Ghost open your player card, remove the item and waddle once aging into the Ghost Maker! This time DON’T press “d” or Dance Just wait…leave the Ghostamatron and then click on “d” or Dance…SCARY! Detail: When you leave the room you will become an ordinary Ghost and then when you turn into a Penguin aging you will be normally dancing :)

…Here I have done the Ghost Dance Trick while wearing a Music Splatter Hat :)

…You can open your Player Card and add any outfit during this Glitch :) Look! I’m a Waddling Dancing Penguin!

…click on “d” or Dance to Double Dance :)

…To become a Normal Penguin again just leave the Ghost Laboratory :)

… Tips: You can do this Glitch with lots of items that have a Special Dance :) Time to go Dance Creative :) This is how the Animation looks like after I had a Hard Hat on while Transformed…LOL :)

…You will find MORE Disney Club Penguin Halloween Weirdness at this post Club Penguin Cheats Halloween Party 2012
UPDATE: Here is another FUN Cheat :) How to be a Two Colored Penguin?