At the Lakeview Craig asked Meg if she felt bad and needed a ride home. They went to Paul's penthouse after Meg got sick in Craig's car. Meg took her soiled blouse off and Craig offered his lap for comfort, along with ginger ale and crackers. Meg thanked him for his kindness. Then Paul showed up. Craig explained how she got ill and he drove her home and it was all completely innocent. Craig left. Meg, dressed for work, comes out of the bedroom. She asked Paul why he was giving her the silent treatment. Paul confronted her about the kiss at the gala and told her that Craig told him about it. Meg explained a slap was all Craig got in return. Paul's anger swelled due to the fact that Meg lied to him again.
In Java Lucy and Dusty went over the facts about Lucy testifying against her father. Dusty saw the necklace she had given him--and he gave back to her--around her neck. She said it was a way for them to be close since they needed to keep their distance. Emily came in and Lucy went to the hospital. Emily told Dusty a tale about Craig...that Craig had a vial of some drug and that is was intended for Lucy. Emily told him Craig said that Lucy would never testify against him. Dusty wanted to stop Craig before Lucy got hurt and he ran out of Java.
Craig came into Java and told Emily about Meg getting sick and how he nursed her for a bit. Emily told him that he lied to Dusty like he wanted her to about the vial being for Lucy. She asked him what the plan was and Craig told her that she'd see. Meanwhile Dusty zoomed down the road to Fairwinds to find Craig. He pressed the brakes and they didn't work.
Carly and Simon went over to Emma's where Jack was taking care of the kids. Carly promised to tuck them in for bed. When they arrived Simon and Jack stayed on the porch to talk and Carly went inside. Jack told Simon he couldn't hurt the kids. Simon said there was no way he'd do that. Then Jack reminded him of their dealing with the loan shark and how it was a violation of Carly's probation. Simon told Jack that the deal was done and it was all over now.
Katie came home and saw Mike reading the computer screen. She tried to explain herself and Mike wondered if what he read was the truth or fiction. He flat out asked her and Katie confessed. She tried to explain again. Mike exploded. Mike told her how he can't trust her and that she disrespected him and their marriage. Mike walked off and Katie grabbed her keys and went after him.
At the Lakeview Mike asked where Simon was. He's informed that he's not in at the moment. Katie rushed in, and then Simon and Carly appeared.
Carly and Simon run into Katie and Mike. Mike clocks Simon, knocking him off his feet. Mike reveals Simon slept with Katie last night. A broken-hearted Carly blasts both Simon and Katie. Carly tells Katie she can have Simon. Simon tells Carly it was unintended - that it was their way of saying goodbye. Katie begs Mike to forgive her. Mike tells Katie he knows she still loves Simon and he storms out. Simon admits to Carly he and Katie "messed up" and asks for another chance. Simon defends himself by telling Carly he overheard her tell Jack Simon didn't mean anything to her. Carly walks out on Simon. Simon questions Katie's motive for telling Mike. Carly goes back to the farmhouse to talk with Jack using concern over Parker's sadness as a pretense for her visit. She confesses she's to blame for the mess her life is in.
Lily refuses to leave the house because she can't fit into any of her clothes. Being ill has caused her to not be able to get back into shape after having the baby. She focuses on her weight, instead of spending the special evening with Holden. Jade tries to talk to Lily - tries to find out why she's so upset. Lily confides in her that she's uncomfortable with her body. Jade assures her she's beautiful and Holden loves her. Lily tries to explain to Faith her reasons for not going out with Holden. Her daughter assures her she's beautiful. Meanwhile, Jade sees Holden sharing a coffee and something else with a beautiful, young, shapely blonde
Paul and Meg continue to fight over the kiss Meg shared with Craig at the ball. Paul believes Craig is using Meg - Meg believes Craig is using Meg only to get to Paul. They vow to no longer fight over Craig and to share anything involving Craig. Meg continues to be ill from the effects of being drugged by Emily. Jack visits Meg to check up on her and to let her know he's concerned about her involvement with Craig. Jack takes Paul side when it comes to his feelings for Craig. Meg finally agrees and is determined to turn the tables on Craig.
Emily shares a coffee with Henry telling him she's working with Craig. Henry warns Emily of Craig's underhanded schemes. He tells her to walk away from Craig. She assures Henry that Craig's games will allow her to win as well. Henry wants to know what Craig's plan is and who the intended target is. He asks her to not resort to malice to win back Paul. Henry tells her he can't watch her self-destruct again. He tells her the worst is yet to come if she's willing to consort with Craig.
Craig approaches Lucy at the hospital asking for another chance. Craig threatens Lucy that her testimony will hurt a lot of people. Lucy tells Craig he doesn't intimidate her and she's not dropping the charges. She also tells him she knows he wouldn't hesitate to hurt Dusty if he thought that would stop Lucy from testifying against him.
Dusty, hurt and bleeding from a gash in his forehead with an apparent broken arm, pries himself out of is wrecked car trying to flag down help. Paul comes to Dusty's aid and phones for help. Dusty tells Paul someone tapered with his brakes. Dusty is brought into the hospital on a stretcher. Dusty tells Lucy it wasn't an accident. The police officer confirms his brakes were compromised. Lucy tells the police she suspects her father was involved. Meg walks in - providing an alibi for Craig.
At the Lakeview, Katie and Simon discuss what happened between them and Katie accuses Simon of ruining her life again. Katie blames Simon for playing on her vulnerability and Simon says he only showed up to talk to her, not to seduce her. Simon tells Katie he is sorry about everything and then sends her off to try to make things right with Mike. Simon says he is going to try to find Carly to prove to her he wants to be only with her.
Carly shows up at the Snyder farm and admits to Jack that she "picked the wrong guy". The two reminisce about their "normal life" together and she admits that Jack was right about Simon. Jack tells Carly that he can't listen to her problems about Simon because he loves her and she completes his life, but before they can talk more Simon barges into the house and Jack tells him to get out. Before Jack can throw Simon out he is called to the station on an emergency and offers to get rid of Simon as he leaves, but Carly tells him it is o.k., that she can take care of Simon. The two of them argue about Simon sleeping with Katie and he tells her he is over Katie and only wants to be with her. Simon tells Carly that sleeping with Katie ended that chapter of his life and he tries to convince her to stay with him. Carly asks Simon to tell her how she can trust him again and she asks him if he can be monogamous and he says yes. Carly believes Simon and agrees to try again and kisses him just as Jack returns to the farm and catches them kissing.
At his house, Mike remembers his earlier conversation with Katie about her affair with Simon and then he tosses her computer out the front door. Katie returns to the house and Mike comes downstairs with his bags and tells Katie he is leaving. Katie tries to convince Mike to stay with her and tells him he is the only man she loves, but Mike tells her he doesn't believe her and once he leaves the house he will never come back. A tearful Katie tries to persuade Mike that their home is full of loving memories of them, not Simon, but Mike removes his ring and tells her to put it in her next box of memories. Katie begs Mike to stay and tells him she won't just let him walk away, but he throws the ring down and storms out to the sounds of Katie crying.
At Java, Emily learns from her mom that Dusty was in a car accident and recalls her conversation with Craig; which leads her to believe Craig had something to do with Dusty's accident.
At the hospital, Dallas questions Lucy, Paul, Dusty and Craig about Dusty's accident. When questioned about the evening, Craig gets an alibi from Meg for the time in which they believe Dusty's car was tampered with. Dallas tells them all he will continue the investigation, but that Craig is free to go since he has an alibi for the evening. As Craig is getting ready to leave, both Dusty and Paul threaten Craig's life in front of Dallas. Craig reassures Lucy he had nothing to do with Dusty's. After Craig departs the corridor, Meg and Paul get into a fight about Meg telling Dallas she was with Craig. Emily shows up at the hospital and finds Craig and accuses him of tampering with Dusty's car and Paul and Meg hear their argument. Emily tells Paul and Meg about the recent events with Craig and how she saw Craig with a vial and told Dusty she thought he was going after Lucy, but leaves out many details of Craig's plan and that she, Emily, was the one who drugged Meg. Craig tells her and the others that the vial only had vitamins in it and Emily let her imagination get the best of her. Emily agrees with Craig and reassures Paul and Meg that she can't prove the vial had anything but vitamins in it. Craig and Meg have another run-in; where she accuses Craig of doing everything he can to get back at Paul. Craig tells her it was not his intention to come between her and Paul and she tells him to stay away from her. Paul and Emily continue their talk about Craig and Meg comes by to tell Paul she is going home and before he leaves to follow Meg, Paul asks Emily to let him know if Craig is planning anything else and she agrees. After Paul leaves, Craig talks to Emily and reminds her that part of his plan is to help Emily get Paul back. The continue their fight outside Java; while back at the hospital, Lucy sits with Dusty and tells him she knows what to do about her father and vows Craig will never hurt him again. Lucy tells a sleeping Dusty that she loves him.
Back at their penthouse, Meg tells Paul that she told Craig to stay away from her and Paul tells her it won't matter because Craig will do what he wants. Paul is angry with Meg for giving Craig an alibi and she tells him she told the truth so that Craig couldn't destroy him again with lies and deceit. Paul says he is trying to destroy Craig and will lie, cheat, and do whatever to destroy Craig, but Meg says she can't lie and scheme on Craig's level and stay with Paul if he does and she storms out.
Will is studying for his GED exam when Adam shows up to pick up Gwen. There was a change in plans on their recording session. Adam arranged for Gwen's recording to be accompanied by three Grammy winners. Gwen feels she's not good enough to perform with them. Adam convinces Gwen that she is good enough and they wanted to come to work with her after hearing her demo. Jade walks in and sees Adam and Gwen together. Adam cancels their plans for the afternoon and promises to make it up to her. Jade walks off being jealous. After running through the song again, Adam tells Gwen she got it this time. Meanwhile Will runs out for a celebration cake (for passing his GED) and in walks Jade. Jade gladly tells Will Gwen won't be home too soon.
Casey borrows some money from Adam. Maddie wants to know why. Casey is evasive in his answer. Casey disappoints Maddie by canceling their plans for the evening. He encourages her to follow through on their plans for the film festival. He promises he'll get everything under control soon.
Carly visits Jack to apologizing for dumping her problems on him. Jack tells Carly he saw her kissing Simon. Jack is angry Carly chose Simon over him but tells her he respects her decision. He also tells her not to come running to him the next time Simon hurts her. Mike comes in asking Carly if she made up with Jack. She tells him she forgave Simon and Mike should do the same with Katie. Mike accuses Carly of wanting Mike to take Katie back to get Katie out of the picture - freeing Simon for her. Mike tells her he can't forgive Katie. Carly tells Mike to think hard about his decision.
Katie tells Henry Mike left her because she slept with Simon. Henry tells Katie she needs to be sure she no longer has feelings for Simon. He commits to helping Katie get Mike back. He gives her a pep talk and tells her they need to get to work on his plan. Henry lures Mike back under the pretense that there's a pile of important papers Katie is planning to burn - that she has been drinking. Mike is worried they may be his construction papers, so he heads home. Mike gets home to get his papers, Henry leaves - locking the door. Katie comes down the stairs wearing a seductive dress.
Simon meets with a jeweler about a diamond necklace he had designed - using one of the jewels from the stolen necklace. Simon calls Carly and invites her to join him in the lounge at the Lakeview. Jack comes across Simon in the lounge and overhears Simon's instructions to the waiter for his romantic dinner plans. Jack asks if Simon is planning to seduce Carly. Jack warns Simon not to hurt Carly again. Jack tells him to be good to Carly instead of giving her jewelry. Carly comes in and Simon gives her the necklace. She opens it and realizes it's a diamond from Vienna's stolen necklace. She think's he has lost his mind.
At the recording studio, Adam and the musicians he hired are all happy with the way Gwen's recording of "Slide" turned out. One of the musicians makes a comment about this making up for the problem with the record in LA, and once they're alone, Gwen asks Adam what happened in LA. Adam essentially tells Gwen to mind her own business, but ultimately he says it was just a record deal that didn't work out, and he's over it.
At Java, Jade runs into Will, who is there to pick up a cake; he tells Jade he and Gwen are going to celebrate the fact that he's done well on the GED and that she's making her first recording. She tells him she just came from the recording studio, and Adam had made it sound like they might be there most of the night working on Gwen's demo. She offers to buy Will a cup of coffee, and they sit down to talk for a few minutes, with Jade asking Will if he and Gwen will move to Los Angeles to help Gwen's new career, or if they'll stay in Oakdale except for all the times that Gwen is touring to promote her record. Will seems unsure about all of this, and Jade then tells him how focused Adam was on Gwen. She tells him that they both seemed very intense and in tune with each other, and that Adam seems to really know what he's doing and is the person who is making Gwen's dreams come true. Seeing Will's reaction, she quickly assures him that Gwen would never do anything to hurt him. Will decides it's time to leave, and he picks up his cake and goes to the recording studio, where he walks in as Gwen and Adam are huddled together listening to a song Adam wants Gwen to cover. Will and Gwen embrace, and when Will asks Adam if they're finished for the night, Adam says they are; Gwen thanks Adam, then she leaves with Will. When they get home, she sees the flowers and food Will has brought home for their celebration and suddenly remembers his GED, asking how he did. He tells her he's pretty sure he aced it, and she hugs him and tells him she's proud of him.
At Katie's house, Mike has been locked in by Katie and Henry. Katie comes downstairs dressed to entice Mike, but he's not buying it. He insists that she let him out, so Katie calls Henry on a walkie-talkie and has him unlock the front door. Henry does, and Mike tells him to get lost, then goes back inside and tells Katie he doesn't think talking will accomplish anything. Katie protests that their marriage is worth saving, saying she's more than just her mistakes and asking Mike to remember their wedding day and all the time they've spent building a life together. Mike tells her the problem is that he has been 100% in the marriage, while a part of Katie still loves Simon; he tells her that denying that isn't fair to her and isn't how he wants to live his life. With that, he tells her goodbye and leaves. Katie leaves, too, and finds Henry at the Lakeview, where she tells him their plan didn't work. Henry tells her to come on in and have a bite of dinner with him.
At the Lakeview, Simon has shown Carly the diamond necklace he had made for her, and she reacts by asking if the diamond is from the jewels they stole from Vienna. Simon admits that it is, and Carly is stunned to learn that he would even consider keeping such a thing as a souvenir. He tells her it was supposed to be a special reminder of their first night together, but she says she couldn't possibly flaunt something like that diamond in public, because it would be bad karma; Simon says it's Detective Jack she's worried about. Simon gets up and takes the necklace to the waiter, asking if he has a trash can he can use, but Carly freaks out when she thinks Simon might actually throw the necklace in the trash. Carly grabs the necklace from him, and she tells him it's a wonderful gift and that the best thing about it is that he did it as a remembrance of their first night together. Simon puts the necklace around Carly's neck, and Henry and Katie walk in and see them. Katie is immediately furious, telling Henry, "They are so not getting away with this!" and saying that Simon led her to believe that he and Katie shared a bond that was unbreakable, then proceeded to break it after she began to believe him. She says he ruined her marriage and her life, and she wants revenge. Looking at the huge diamond in the necklace that Carly is now wearing, Katie says she has an idea for a few new pages for her book, "Oakdale Confidential: Secrets Revealed."
Elsewhere at the Lakeview, Dusty tells Lucy not to worry about Craig hurting him if she testifies against him, because once Craig is in prison, he won't be able to do anything to Dusty. Lucy disagrees, saying Craig could hire someone else to hurt Dusty, but Dusty says Craig is just playing with her mind and insists that she testify anyway. When the assistant DA comes up to talk to Lucy, Dusty leaves.
In the courtroom, Craig and his lawyer talk before the hearing; his lawyer is doubtful that she can keep him out of prison if Lucy testifies and the case goes to trial, but Craig is unconcerned. He sits and shows the lawyer a picture of Johnny, telling her how much he loves his son and just wants the chance to raise him. Lucy walks in and overhears their conversation, including Craig commenting that Lucy is only doing this to impress Dusty, but that after last night, she won't go through with it. Lucy walks up and says now she knows for sure that Craig sabotaged Dusty's brakes, and now more than ever, she wants to testify against him. Craig's lawyer warns her not to say anything unsubstantiated or not "on point." Craig tells her she should think about her brother and him and the fact that he's just trying to keep his family together as a family, but Lucy says she doesn't want anything to do with him anymore. She asks if he intends to hurt or even kill Dusty if she testifies, and Craig tells her she gives him far too much credit, but he can't predict the future, and accidents do happen. He walks back to his lawyer, and Dusty walks up and tells Lucy that Craig can't hurt him and not to be nervous. The judge calls the hearing to order, and Lucy takes the stand to testify.