Will received a pink notice from his biology teacher because he had missed the final exam. He lied to Gwen about taking the exam, but she found the notice.
Meg refused to move into the new house with Paul because of his responsibility to Emily's baby. Paul left and went to the hospital. He announced to Emily that he planned to give up his parental rights to her baby. While Paul was at the hospital, Emma went to the apartment and insisted that Meg move to the farm with Emma. Meg stayed behind to finish packing.
Carly discovered a Saint Christopher's medal in Nick's pocket and went straight to the station to tell Jack that she had found the missing medal. Nick walked in, followed by Mike and Katie, and Nick pulled the medal from his pocket. Nick and Mike both explained that every member of their family had been given an identical medal. When everyone blasted Carly for suspecting Nick, Jack was the only one to defend Carly.
When Jack defended Carly, Katie told him he was falling into his wife's trap. Jack insisted to Carly that they couldn't keep finding excuses to get into each other's lives. Carly left and then warned Katie that she thought Nick could ruin Katie and Mike's new marriage. Carly asked if Katie had ever seen Nick with the medal before.
Meanwhile, Mike asked Nick if he had stolen the medal. Mike suspected that Nick thought Mike was guilty.
Lily confided in Lucinda that Luke was gay and was shocked when her mother wasn't shocked. Lucinda said obviously something had been bothering Luke, and at least it was out in the open. Meanwhile, Luke delivered Jade's stuff to her and insisted that his life was better since the truth was out than it had been when he had been faking it with her. However, Jade kept pointing out how uncomfortable Lily still was with her baby boy. Later, Luke found his mother and grandmother and realized Lucinda knew everything.
Gwen found a note from Will's teacher about the biology exam he had missed but was stopped from questioning him when Maddie rushed in sobbing that Casey found her repulsive. At the same time, Casey went to Tom for help with how to say no to a girl. Gwen sent Maddie off to find a private spot for Maddie and Casey to make out, while Gwen looked for Will to ask about the biology test. Will told Gwen they obviously didn't want the same things out of life. Gwen stormed off, and Will ran into Jade.
Later, Lisa informed Maddie that she'd be going out of town. She wondered if Maddie would watch their suite for her.
At the farm, Paul wanted to see Meg, but Emma wouldn't let him. He left. Emma went inside to talk to Meg. Sensing a lecture, Meg went outside for air. Paul stepped toward her. He told her he was giving up all rights to the baby because he wanted to be with her -- and because he wouldn't make a good father. He offered to take her anywhere in the world she wanted to go. She promised to think about it.
In Emily's hospital room, Henry told her about the briefcase. He told her the police had it, and they would trace it back to B.J. Emily promised not to rat Henry out. Henry couldn't believe how sanely Emily was behaving. Hal arrived, read Emily her rights, and told her he would return the next day to take her into custody. Hal left.
Emily told Henry she was keeping the baby. Henry told her all the reasons it was not a good idea. Emily said Susan would raise the baby because Paul was giving up his rights. She was glad Paul and Meg wouldn't be raising her child. Henry kept telling Emily how crazy she was before the incident and insisting it might help keep her from jail.
In the park, Jade and Will discussed families. Jade told him she had left home as soon as she could. Will looked as though he felt sorry for Jade. He said goodnight and headed home. Jade went to the library. She phoned her father and told him she was not in trouble or in jail, and she didn't need any money. She told her father she wouldn't bother him by calling again. Jade hung up. She lay on the floor, using her bag for a pillow and a jacket for a blanket.
At Hal's house, Gwen and Casey talked about her problems with Will. She told him Will was upset that she and Casey had fallen asleep. Casey offered to leave before Will returned home. Gwen said no because if Casey and Will ignored each other, things would get awkward. As Casey was leaving, Will arrived.
Will told Casey everything was fine between them. Will walked into the kitchen and went upstairs without speaking to his wife. Gwen stood by the stairs and told him nothing had happened with Casey. Will returned downstairs. Gwen wanted to know what was troubling her husband, but he wasn't sure. She suggested they both drop out of school. He said he wanted to finish school and then get an apartment.
At Lisa's, Maddie prepared for a romantic evening with Casey. She fantasized about him. Her dream was a silent film complete with music and subtitles. She realized she had no condoms. She left to get some.
At the drugstore, Maddie wasn't sure what kind of condom to get, so she got a lot of different kinds, sizes, and flavors. While she was checking out, Tom walked in. She stood in front of the sales counter to keep Tom from seeing what she was purchasing. She said they were bandages for her ankle. She grabbed her bag and left.
After Tom received the prescription for his grandmother, Hal walked in. Tom told Hal that Emily was in a lot of trouble, and they needed to prepare themselves.
Maddie returned to Lisa's apartment. Casey arrived, and she tried to seduce him. He backed away. Maddie wanted to know if she had done something wrong. In his head, Casey heard his dad telling him to tell Maddie the truth about respecting her too much to have sex with her. Casey tried but left without telling Maddie the truth. Maddie was left alone and hurt.
Maddie, freaked out by Casey's rejection, demanded to know if Will thought she was hot. She asked if he would do it with her. Will said he was the wrong person to speak to -- his marriage was about to break up over a stupid biology paper. Maddie went back to the store to return her condoms and ran into Casey.
At the library, Will tried to study but was quickly frustrated. Jade arrived and offered him a solution. Meanwhile, Gwen was also freaked out about her fight with Will. Carly advised her to just stay away from Casey if it bothered her husband so much. Gwen wasn't sure if she could give up her job.
Dusty was eager to get to Emily's arraignment, and Tom had even taken Daniel to say goodbye to his mother. However, Emily's new plea of insanity put everyone's plans on hold. Emily said that being arrested had brought her back to earth, and she realized how sick she had been. She begged Hal and Tom to see the goodness in her. Tom didn't buy it, but when he saw Emily with Daniel, he agreed to a 30-day psychiatric evaluation period. Dusty overheard, and his temper exploded.
Mike urged Katie to believe as much in Nick's innocence as she did in his. Katie promised to try. However, after both men left, she found another St. Christopher's medal. A desperate Katie called Carly and said Carly might have been right about Nick.
Casey ran into Maddie at the drugstore and saw that she was trying to return several opened boxes of condoms. Upset, she left, but he followed her to Java, where they had a long talk about their relationship and why it hadn't gone to the next level yet. Casey reiterated all the bad things that had happened in his life after he'd had sex with Gwen -- the loss of his parents' trust, the loss of his best friend, the loss of his son, and the loss of his chance to go to the college of his choice -- and said that was why he was a little gun-shy.
Casey told Maddie that he thought she was the greatest, but he was scared of what might happen if they moved too fast, because things were finally starting to get back on track for him. Maddie was happy that Casey had been honest with her about his feelings, but then Casey said he had to rush back to Crash to take care of some business, and she looked less than happy when he left.
Jade saw Will at the library and found out he had a biology term paper due that he had not even begun to work on yet. Jade suggested he find a paper on the Internet, buy it, modify it somewhat, and turn it in as his own. After some initial objections, Will succumbed to the temptation. Jade found a paper for him on ecosystems and printed it out.
Gwen arrived, and Will introduced her to Jade and told her that Jade had been helping him with his research. They talked about the fact that Jade needed a place to stay, and Will suggested Gwen's old place above Bert's garage. Jade said she'd check it out. Gwen hugged Will and told him how proud she was of him for working so hard to graduate.
Katie found another St. Christopher's medal in a box full of Mike's old things and showed it to Carly. They decided to call local jewelers to find out whether Nick had actually taken another medal in to have the clasp fixed, like he had said he was doing, and they figured out that he had taken it to a jeweler near the police station. Katie had the jeweler deliver the repaired medal to her house, where Carly recognized a notch on the medal and determined it was the same medal that she had found in Nick's jacket pocket.
Katie and Carly determined that meant the medal Katie had recently found was actually Mike's, and they assumed that meant the other medal was Nick's. That meant that Nick had been trying to cover for himself, not for Mike, if he took that medal from the evidence room at the station. Carly wondered why they had said the medal had Mike's DNA on it, but Katie had written down what the report had said, and it had said that the DNA was "consistent with" Mike's DNA.
Paul met with Jessica, who gave him the papers he had requested to relinquish his paternal rights to Emily's baby, plus his divorce petition. She questioned him as to whether he was positive about his feelings and whether he might someday change his mind and want to be involved in the baby's life, which wouldn't be possible after he signed the papers. He assured her it was what he wanted.
Paul called Meg and left her a message telling her how much he loved her, explaining about the relinquishment and divorce papers, and asking her to go to the Fiji Islands with him. Jack entered as Meg played the message, and he tried to warn her away from Paul by comparing the two of them to him and Carly. Meg pointed out the ways in which they were different, but she said Carly and Paul were also very similar, having been raised by people like Ray Tenney and James Stenbeck instead of by someone like Emma Snyder.
Meg told Jack that Carly and Paul didn't have the grounding Meg and Jack did, and that that was what they needed, looked for, and wanted from Jack and Meg. She said that was why they cared so much for them, and she suggested that Jack wouldn't be happy until he had gone back to Carly. Jack told her it sounded like someone had decided to go to Fiji.
At the hospital, Emily was moved to the psychiatric observation wing despite Dusty's protests and complaints that Tom and Hal had let her off too easily. Paul showed up with the relinquishment papers and tried to convince Dusty that he'd had nothing to do with Emily's decision to keep the baby or with her being transferred to the psychiatric ward. Dusty was bitterly angry anyway, and Jennifer tried to calm him down by telling him that if he would just stay focused on her, the baby, and their future together, she would put Paul out of her life permanently.
Emily was moved to her new room and found a sonogram picture of her baby; she cried to the nurse about how hard it would be to give the baby up when she had to go to jail. They left so that Emily could see the doctor. Paul found Emily's new hospital room. Although Emily wasn't there, Paul saw a file on the table by the bed and picked it up. Inside was the sonogram photograph they'd given to Emily. Paul was sitting on the bed, staring at the photo, when Emily returned.
Dusty, Jennifer, and JD were outside on the bridge, feeding the ducks, when Dusty asked JD if he thought his mom would marry Dusty.