This is a game from Team neutral on Smogon (Rest in Peace)
The person who is "It" takes the name of a Pokemon and makes an anagram out of its letters, and its ability and makes an anagram out of those letters, and uses the two anagrams in a sentence or two. He makes the words in the pokemon anagram RED, and the anagram for the ability blue. Then the first person who guesses the pokemon and ability wins and gets to make the next anagram. if the correct guesser fails to make a new anagram, anyone else can repeat the correct pokemon and ability and they are "It".
I will start:
Years ago, our neighbor's main diet was insescts, so everytime he found a bug in our yards, he ate it.
So the anagrams are:
main diet it