The antagonist could be an evil witch. She might be after Timmy because he has a special power or an object that she desires. She uses her dark magic to create all sorts of obstacles and terrors for Timmy.
The scariest part could be if Timmy discovers a dark secret about his family. Maybe he finds out that his ancestors were involved in some sort of dark magic or cursed activities. This would bring a sense of dread as he realizes that this dark past might be affecting his present life in some way.
Timmy's friends' reactions could vary widely. His female friends might be more welcoming and excited to have him as a 'new girl' in their group. They could start inviting him to do girl - only things like slumber parties or shopping. However, some of his male friends who are more set in traditional gender roles might be a bit standoffish at first. But over time, as they see that Timmy is still the same person on the inside, they could come around and accept him in his new form.
The educational values in Timmy Time Stories include teaching kids about friendship. For example, Timmy interacts with his friends, and children can learn how to get along with others from it.