Is that a good word?

Lately James has been using new words, or making up his own, and then saying either 'Is dat a dood word?' or 'Is it O-tay to say dat?' I think he gets this because he has come up with a few less than stellar vocabulary words that we have told him are not allowed in our house. We will be sitting there and he will say 'Is it O-tay to say strutch?' Or some other totally made-up word. Or some random phrase like 'paper route.' Really, I have no idea what goes on in his head. Yesterday, he told us all about his friend, who had a name I can't remember now. He talked about him, and we started to wonder if this was James' first imaginary friend. We asked if he was big or little. He said big. We asked him where he knew him from. He said he works at PBU. He went further to say that he works at PBU like Chappy, but not with Chappy. We have absolutely no clue who he may have been talking about, but figure there must be some basis for his thoughts. Anyway, I have just lost my entire train of thought and I have to get dinner finished up anyway, so I'll be back later.