Margo takes Will and Gwen to the police station to begin booking them. She tries to get them to reveal who helped them set up their hideout in the old Metro, but they aren't talking.
Maddie and Casey ask Henry to distract Barbara Ryan so they can get into Barbara's suite at the Lakeview. They want to find Jennifer's nanny-cam which they hope will show the entire incident when Barbara got hurt. Henry reluctantly agrees, and the teens enter Barbara's rooms. They have no luck finding the camera quickly, however.
Henry gives Barbara a martini but is running out of stall techniques when Babs receives a call from Margo. Margo tells her that she has Gwen and Will in custody, and Barbara threatens Margo is she files charges against Will. Barbara leaves immediately for the station.
Emily peeks through the window of Paul's room at the Wagon Wheel Motel and sees him kissing Meg. She is devastated and goes back to the Lakeview to cry on Henry's shoulder.
Carly arrives at her cocktail waitressing job and calls Jack, lying about where she is. She does agree to meet him at the coffee shop later, however. She tries to quit her job, but Butch talks her out of it when he mentions that a certain VIP named Anatoly is playing in the card room tonight. This man may be the key to the gambling case Jack and Nick are working.
Paul and Meg discuss their shared kiss and what the future might hold for them separately. Meg sees only two choices for her: leaving Oakdale or staying. Paul suggests they take off together since they are both alone.
Carly calls Jack at the coffee shop and tells him she has been delayed. Anatoly arrives and Carly serves him a drink and flirts with him. The poker game begins which includes Nick and Anatoly, and Nick grabs Carly's left hand and works her wedding ring off her finger. He puts it in the pocket of his jeans. Charmin shows up at work and agrees to cover for Carly so she can go meet Jack quickly.
Katie has joined Jack at the coffee shop, and Jack is not overjoyed that Nick is staying with Katie while Mike is out of the country on a job. Carly arrives from her "fundraising meeting," and Katie leaves.
Barbara shows up at the Oakdale PD and asks to see Will. Will begs his mother to drop the charges against Gwen, but Barbara agrees only if Will promises never to see Gwen again. Margo interviews Gwen who makes up some stories about how some of Casey's and Maddie's clothes ended up in Gwen and Will's possession.
At the Lakeview in Barbara's suite, Maddie discovers the nanny-cam hidden in a throw pillow. The teens take the tape out and play it, but it does not show any scenes of the night in question.
Will refuses his mother's offer and asks for a public defender. Barbara is furious and storms out of the station when she is confronted by Casey and Maddie. They tell Barbara they can prove that Gwen never laid a hand on her and produce the tape.
Gwen and Will have a minute alone before they are taken off into separate cells. Emily has calmed down at the Lakeview and comes up with a plan. She calls Dusty and leaves a message for him to call her. She has vital information for him and Jennifer, Emily says.
Carly lies to Jack, saying she must have left her wedding ring in the bathroom at the school after the PTA meeting. He offers to drive her back to the school to look for it, but his phone rings, and Jack tells Carly the other guard at WOAK has caught a prowler and is taking him to the Oakdale police station for booking, so he has to leave. Carly calls Nick and leaves him a message that she needs her ring back right away. Meanwhile, at Katie's place, Nick has come home late and dropped his coat on the floor; when Katie picks it up, Carly's ring falls out. She asks Nick what he's doing with Carly's ring, and he tells her it must have fallen off in his car when he gave Carly a ride home the other night, but she doesn't believe his story. Nick then asks Katie to please return the ring for him, which Katie thinks is suspicious, but which she agrees to do.
Casey and Maddie tell Barbara she should do the right thing and drop the charges against Gwen, or they'll give the videotape of the incident in her apartment to Margo to prove Gwen is innocent. Barbara takes the tape away, but they tell her they have another copy, so she gives it back and goes to talk to Margo. When she tells Margo she wants to drop the charges against Gwen and dismiss her complaint, Margo and Will both want to know why. Barbara tells Margo it's because one son has recently killed himself and she can't stand the thought of losing another son right now. She tells Will she loves him enough to do this for him. Margo releases Gwen and Will and tells Barbara she has to fill out some paperwork. Will gives Barbara most of the $1,000 they stole back, even though Barbara wants him to keep it.
Jack comes into the station and sees Gwen, who tells him that the charges have been dropped. Jack is happy to hear the news and tells her Carly has been worried about her. Will comes over, and Gwen suggests they go thank his mom for dropping the charges. Barbara takes the tape from Casey and Maddie and leaves the station, while they congratulate themselves on the fact that their bluff worked. Will and Gwen overhear them and asks what's going on; Maddie tells Casey they should tell Will and Gwen the truth, which they do. When Will and Gwen realize the tape was blank and it was all a bluff, they are stunned that Casey and Maddie would go to these lengths for them; Maddie says it was all Casey's idea. Will and Casey shake hands, then Will and Gwen leave. Maddie tells Casey she, too, was surprised that Casey did all that for Will and Gwen. He tells her he didn't do it for them, he did it for her, because it obviously meant so much to her to help them. Maddie, for once, is virtually speechless, and they are about to kiss when Margo storms up, unhappy about all the money and paperwork involved in the whole Gwen/Will incident, telling Casey and Maddie that it's time to go and they're not off the hook yet.
Back at her apartment, Barbara pops the tape into the VCR and turns it on, forwarding through the whole tape before realizing that all it shows is the baby sleeping; she says to herself, "Those lying brats!"
Katie goes to Carly's house and shows her the ring; she tells Carly she won't give it back until she tells her what it was doing in Nick's coat pocket. Carly tells the same story Nick did about the ride home, but Katie still doesn't believe that story. She tells Carly to leave Nick alone and not to mess up his life the way she once messed up Mike's life, and Carly tells Katie she's way off base, that she wishes Nick had never come to town in the first place. She demands that Katie give her the ring before she claws it out of her hand, but Katie tells Carly not to go head-to-head with her; Carly asks if she's supposed to be intimidated just because Katie does "jumping jacks on TV," and then they go after each other. Jack walks in and separates them, asking what's going on. Carly slips her ring back on and tells Jack a lie about having been in a hurry on the roads on the way back from finding her ring and accidentally almost running Katie off the road; Katie plays along with the story. Jack is upset that Carly would drive recklessly like that, and he tells Carly she should apologize to Katie, which Carly does. Katie tells Carly not to mess around with the law anymore, and she leaves. Jack tells Carly about Barbara dropping the charges against Gwen, then he has to leave to go back to work. Katie returns home and tells Nick about her fight with Carly, saying that Carly "protests too much" about not liking Nick. Nick insists there's nothing going on between him and Carly and tells Katie she should give it a rest; he walks out, and Katie says to herself, "I don't think so."
Gwen and Will discuss their options for a place to stay, which are basically the same as they were before they stole the money from Barbara. Gwen thinks they should take Bob and Kim Hughes up on their offer of separate rooms at their house, saying maybe she can sneak into Will's room after they're asleep. Will tells her she doesn't want to get a slap down from his Aunt Kim.
Lily and Jade return from shopping at the mall. They exchange little gifts: Lily gave Jade some earrings, and Jade managed to buy a baby outfit to give to Lily and Holden for the baby. Lucinda comes to visit Lily and Holden and is shocked to find Jade holding the baby outfit; she jumps to the wrong conclusion, saying this teen pregnancy explains why Jade has suddenly shown up on their doorstep. Lily and Holden tell her she's mistaken, that it's Lily who is pregnant, which stuns Lucinda but also makes her happy. Lucinda apologizes to Jade, but when Jade leaves to get some food for Lily at Lucinda's suggestion, Lucinda tells them she still wants proof that Jade is Rose's daughter. When Jade returns, Lucinda asks her questions about the family who raised her, but Jade says she doesn't want to talk about them. The doorbell rings, and there's an express delivery package for Jade, which turns out to contain a letter for her from Rose, via the orphanage. Jade reads the letter, and when Lucinda asks what it says, she asks Lily to read it out loud. Lily does; the letter from Rose apologizes to Jade for having had to place her for adoption, and it offers some "life lessons" for her (don't let anyone walk on you, be happy, etc.). Lily thanks Jade for sharing the letter, while Lucinda sneaks away with it and Holden follows. Lucinda tells Holden that although it looks like Rose's writing, she finds it too coincidental that the letter just happened to arrive out of the blue. Lily asks Jade to put the baby's outfit up in the baby's room and goes to see what Lucinda and Holden are talking about. Lucinda tells her, and Lily says the letter is even more proof that Jade is who she says she is. Lucinda leaves, and Holden tells Lily he still thinks she should ask for a DNA test, but Lily tells him she doesn't want to do that, and Holden agrees to drop it for now.
Maddie meets Nate at the coffee house to end their relationship. Casey sees them together and gets the wrong idea. When Nate leaves Casey confronts Maddie. She tells Casey she broke up with Nate. They lean in for a kiss, but are interrupted by a call from Margo. She wants to see Casey and Maddie immediately. At the police station Margo tells them their actions are criminal. Margo tells them they will be seeing less of them. Maddie and Casey apologize. Margo tells Maddie if she doesn't something like this again, Maddie will need to find somewhere else to live. Alone in the interrogation room, Casey tells Maddie not to worry. They kiss.
At the Lake View, Dusty is making plans to go to the airport. Emily stops him. She tells him that Paul is alive. Dusty doesn't believe her. Emily lets Dusty know, she was there when Paul was shot and that Meg has been nursing Paul. Emily points out Meg could not afford to live at the Lake View because she has no job and no nursing license. Emily says to Dusty that she and Henry have been following Meg. Emily says she saw Paul and Meg together and they are lovers. Dusty asks Emily whey she didn't finish Paul off. Emily informs Dusty that Paul will go after Jennifer. Dusty says he won't let Paul near Jennifer. Emily tells Dusty she will take him to Paul.
Barbara arrives at Hal's. She tells him she dropped the charges because she is concerned about Will. Will and Gwen arrive. Will informs Barbara, he knows Casey blackmailed her into dropping the charges. Will asks Hal if he and Gwen can live with him, but Hal says no. Hal wants both Gwen and Will to concentrate on school. Barbara and Hal start to argue. Will points they both have educations and are acting like idiots. Gwen and Will leave. Barbara tells Hal to go after Will. Hal tells Barbara to leave or he will throw her out. Barbara tells Hal he is over reacting. Hal slams the door in her face.
Meg enters Paul's motel room. She gives him their new 'identification.' Paul starts making plans to leave. Meg feels bad about everything she's done. Paul tells her, she only did those things because of him. He lets her know how great their new life can be. She wants to say goodbye to her family first. Paul tells her they can be in Canada by morning. Meg leaves to say goodbye to her mother.
Henry shows up at Carly's. Carly asks Henry to tell Katie, there is nothing going on between her and Nick. Henry refuses. Carly tries to butter him up. Carly mentions Anatoly. Henry tells Carly to stay away from Anatoly because he is dangerous. Carly asks Henry to explain what money laundering is. As he starts to explain, Carly falls asleep. Seeing her purse, Henry goes through it. All he finds is a moneyless wallet, lipstick, and Parker's medicine. Carly wakes up and thanks Henry for coming by. As he starts to leave, Carly mentions the Galaxy club. Henry tells her to stay away from there ecause Anatoly is a murderer.
Emily offers to give Dusty Paul's whereabouts but not until she gets assurances that she will not be implicated in any way. Dusty indicates he will take extreme measures to keep Jennifer from Paul and satisfied, Emily gives him the information he needs. Once Dusty is gone, the enormity of what she has done sets in and Emily takes off. Meanwhile, Jennifer confronts Madame Lacoste. She confirms for Jennifer that Paul is alive and a stunned Jennifer calls Paul and lets him know she is on her way to the Wagon Wheel hotel to see him. At the same time, Meg shares an emotional goodbye with Holden. Later, there is a knock at Paul's door. Paul, thinking it is his sister, opens the door to reveal an angry Dusty. Determined to get to the truth, Katie follows Nick and is shocked to learn that he and Carly are spending time at the Galaxy strip club. There, Carly and Nick overhear Anatoly talking about a shipment for tomorrow and Carly steals a phone number from Anatoly's pocket. But just as she is about to make a clean break, Carly is caught and in her cover finds herself forced to agree to dance. Meanwhile, Jack has gotten an official complaint about the Galaxy club and realizes this is the perfect chance for him to check out the scene. However, when he arrives, Katie sees him and tries to stop him from going inside. Jack, unaware of the situation, insists she come with him and they enter as Carly is about to take the stage. Kevin suggests Luke use Jade as his cover to allow them to hang out together tonight at the concert at school. Jade agrees but when Kevin gives them their tickets, he accidentally drops his ID on the floor in Lily's house. Later, Jade and Luke successfully convince Holden that Kevin won't be anywhere near the concert and Holden gives them his permission. However, Holden then finds Kevin's ID and is furious he was lied to.
Holden shows Lily that he found Kevin's ID. Lily isn't convinced that it means anything, but Holden is sure Luke is lying to them. Meanwhile, Luke and Kevin are hanging out in the locker room at the school. Kevin offers Luke a drink from his flask, Luke declines, saying he wants to be cautious of his health. Luke wants to go find Jade and Kevin teases him about liking her. They wrestle, while Jade watches from outside the locker room. She leaves and Luke goes to look for her. When he can't find her, he panics, afraid she will tell his parents the truth. At the Snyder house, Holden wants to go get Luke as Jade walks in. She tells him and Lily that she didn't like the concert but made Luke stay because he was having fun. When Holden asks her about Kevin, she says that he showed up at the house wanting Luke to sneak off with him and Luke refused. She says she didn't see Kevin at the concert so she's not sure if Luke ran into him or not, but assures them that even if he did, he's not about to start hanging out with him or drinking again. Luke comes home and Jade tries to clue him in as to what she's told his parents. He manages to stick to her story. Later, he thanks Jade for covering for him. She says she understands his friendship with Kevin and offers to cover for him anytime he needs it.
Maddie is at Java thinking about her recent confrontation with Margo when Casey comes in acting flirty and trying to kiss her. She pushes him away, telling him she's afraid of Margo's threat to kick her out of the house. As Casey is telling her not to worry, Margo walks into Java. She sees Maddie (now alone) and asks where Casey is. Maddie claims not to know, saying that Casey took Margo's admonishment very seriously. Margo reiterates that Maddie can continue to live at their house as long as she and Casey remain nothing more than friends. After she leaves, Maddie gets Casey from his hiding spot. She still has reservations, but when he asks her if she really wants to stay away, she kisses him.
At the Galaxy Club, Butch tells Carly to start dancing for Anatoly. Nick sees Jack and Katie in the doorway and bumps into a waitress who spills drinks on them. As everyone is occupied with the diversion, he ushers Carly into the back room and then shows her that Jack is in the club. She panics and asks Nick for help escaping. He helps her go out the side door just as Jack and Katie walk into the back room. Katie lets slip that she knows Nick and Anatoly questions whether Nick and Jack know each other, but Nick covers by claiming he used to date Katie and then picking a fight with Jack. Jack takes him outside and assures him he's not trying to blow his cover, he was only responding to a disturbance call. Katie claims she was on her way to see Margo when she saw Jack. Nick makes her go home, and when she leaves, Jack tells Nick he isn't making progress on the case and he thinks they should discuss other alternatives with Hal. After Jack leaves, Nick goes to Carly's house to make sure she got home alright. He tells her that she could help him break the case, but it's clear she has no intention of doing so.
As Dusty confronts Paul at the Wagon Wheel, Jennifer waits for a taxi at the Lakeview to take her to see her brother. She sees Meg who says she's in a hurry and slaps her across the face. The two women get into it - Jennifer wants to know why Meg is always at the center of her problems and Meg tells her that she needs to figure out what she's going to do now that she knows Paul is alive. Jennifer accuses Meg of doing everything she's done to get Dusty back, and points out the irony that Jennifer now has everything she wants and Meg has nothing. She tells Meg that she will have to live with her remorse for the rest of her life. She pities Meg, but doesn't hate her. She tells her that Dusty will never forgive her and Meg agrees that he will always try to repay her for what she's done. As Jennifer is about to leave the Lakeview, the babysitter comes down with Johnny who won't stop crying. Jennifer decides to take him with her to see Paul.
Meanwhile, at the Wagon Wheel, Dusty and Paul are going at each other - verbally and physically. Paul tells Dusty that Jennifer is on her way over and that she forgives him and understands why he did what he did. Dusty tells him that he will never allow Paul back into her life. He goes to call the cops and Paul attacks him, throwing the phone across the room. They fight, and Dusty, unable to use the room phone and missing his cell phone, goes outside. Paul follows him, brandishing his cane.
Jennifer shows up at Paul's room and sees the aftermath of the fight. Dusty is about to call the cops on a pay phone when he sees someone come up behind him.