Combine sugar and corn syrup in a large heavy saucepan.
Bring just to a boil over medium heat, stirring constantly.
Remove from heat and stir in peanut butter.
Stir in cereal.
Press into greased 13 x 9 inch baking pan.
Melt chocolate and butterscotch morsels in medium, microwave-safe bowl on medium-high power for 1 minute.
Stir. Microwave at additional 10 to 20 second intervals, stirring until smooth.
Spread over cereal mixture.
Chill for 20 minutes or until firm.