Norma's impatient "father" orders her to kill Timmy and Tabitha before dawn. Delighted to encounter Theresa at the hotel, Julian's libido shifts into high gear when the girl admits she followed him to Bermuda. On Warlock Island, Charity's screams bring the others on the run. Questioned by Miguel, Charity claims she can't recall the premonition which frightened her so badly. Meanwhile, Reese relates another eerie legend about the island's history. Julian's pals bet him that he won't be able to get the lovely Theresa between the sheets. Blissfully unaware of the older man's intentions, Theresa works hard to flatter Julian in hopes he'll agree to take Ethan back. Although happy to be in Luis' arms, Sheridan can't shake the feeling that danger lies ahead. Staring into the fire, Charity whispers to Miguel that she sees death. Julian plies an unwitting Theresa with champagne. Tabitha and Timmy sneak back to the boat and prepare to cast off.
As Julian keeps plying her with champagne cocktails, Theresa tries to find the right words to convince her companion to open his heart to Ethan. Grace confides to Pilar her state of confusion ever since David arrived in Harmony claiming to be her long-lost husband. Charity and Sheridan continue to have visions of danger looming dead ahead. Ignoring Simone's warnings, Kay decides to remove her clothes and slip into Miguel's sleeping bag. Aboard the yacht, Timmy and Tabitha mix up a batch of martimmies to celebrate their "escape" while Norma hatches a new plot for murder on the high seas. Sam bumps into Ivy in the park and the two rehash the gory details of their son's disastrous wedding day. Luis assumes his ears are playing tricks on him after he seems to hear his sister's voice in the hotel bar on Bermuda. Norma locks her sworn enemies into the wheelhouse and sets fire to the boat. A tipsy Theresa agrees to accompany Julian back to his room.
Sam promises Grace that he'll look into the newly discovered marriage license tomorrow. When he offers to stay the night with her, she doesn't think it's a good idea. Ivy begins to realize the consequences of the news when she learns that Grace may be married to David. As Sam worries that his marriage may be over, Ivy offers him comfort and support. Meanwhile, Pilar tries to comfort an upset Grace who rushes to find Sam. Simone finds Kay naked in Miguel's tent and blasts her for her scheme. Charity tells the others about a terrible vision she's had of a fire. At the same time, Tabitha and Timmy are terrified when a fire breaks out on the boat and traps them. Norma laughs to herself as she watches the flames threaten to destroy the boat and her victims. Timmy discovers a way to escape but then realizes the escape hole is so small only he can leave. Though she pushes him to save himself and live for the both of them, Timmy decides to stay with his Tabby since life won't be worth living without her. The two then prepare to die together. Chad pushes Whitney to tell Ethan where Theresa is. Though she doesn't want to, Whitney finally stuns Ethan with the revelation that Theresa flew down to Bermuda to convince Julian to adopt him. Ethan worries about Theresa being alone with his former father. Meanwhile, the alcohol slurring her words, Theresa continues to argue with Julian to adopt Ethan. She ends up in his hotel room, unaware that he intends to "deflower the virgin" much to the delight of his encouraging cronies.
Sam tells Grace that he is certain she is his wife. He understands that she has been confused since David came to town, but he knows that David is lying. Grace wonders what if David is telling the truth. Sam tells her there is no way, and vows never to let anything come between them. While they are talking, they hear a noise outside. When they go to investigate, they find David crouching near the bushes. Sam asks if David is trying to kidnap Grace and threatens to call the police. David has no problem with that as he maintains there is no law against trying to see his wife. Words are exchanged and the men almost come to blows. Grace intervenes and suggests that they go inside and talk. Sam reluctantly agrees. Once inside, Sam points out that David has not provided any information that proves Grace is his wife. David says that he has a story to tell that will prove he is telling the truth.
Ivy tells Pilar now that Grace is married to someone else, she and Sam have a chance. Pilar tries to get Ivy to see that Sam is in love with Grace and that he does not love her. Ivy points out that once Sam realizes that Grace is married to someone else he will have no choice but to turn to her. Then she, Sam and Ethan will be a family. Pilar tells her that she is being unrealistic. Their conversation is cut short when they see David at Sam and Grace's.
Ethan is upset that he can not get to Bermuda until tomorrow. He complains to Jack and Whitney that because he is no longer a Crane, he does not receive special treatment. Whitney explains that this is why Theresa went to Bermuda, to try to convince Julian to adopt Ethan. Theresa is hoping that doing this will make up for telling everyone that Ethan was Sam's son. Whitney tells Jack that she is concerned that Theresa doesn't always think before she acts.
Sheridan and Luis are enjoying a romantic evening, unaware that they are being hunted by Basil and June, who were hired to blow up the boat, "Island Dream." Luis is concerned that Julian might hurt Theresa. Sheridan tries to tell him that he is just being over protective, that even though Julian has done some bad things in the past, he would not forget how young Theresa is. Luis promises to kill Julian should he ever hurt Theresa.
Simone tells Kay that they should leave and go find out what is going on. Kay refuses to leave until she sleeps with Miguel. Simone tells her that what she is trying to do is wrong. Kay tells her that once she is pregnant, Miguel will be hers forever.
Tabitha and Timmy are trapped inside the burning boat. Though they try to escape, they realize it is no use. Timmy wishes Norma had killed him with the ax, rather that leave him to burn to death. Tabitha agrees that burning is not a good way to go. And she should know. Outside, Miguel, Charity, Reese and Jessica watch in horror as the boat continues to burn. Charity screams that this is not what she saw in her vision. As they are discussing how they might help, Reese sees Timmy move.
Simone and Kay arrive at the scene of the fire in time to hear Miguel say he was going to try to rescue them. She begs him not to go. Miguel tries to board the boat through the flames.
In Barbados, Julian is plying Theresa with champagne. She has had too much to drink, and is offering to do "whatever it takes" to convince Julian to adopt Ethan. They move onto the terrace and begin talking and laughing loudly. They crawl back inside and Theresa goes into the bathroom. There is a knock at the door and Julian goes to answer it.
Sheridan and Luis are interrupted by noise on the terrace next door. He goes out onto the terrace to confront the neighbors, but they have gone back inside. Sheridan convinces Luis to go to the door like a civilized person. Luis gets dressed and knocks on the door. He and Julian are stunned to come face to face.
Refusing to back down from his claim to Grace, David announces to her and Sam that he has proof that he was married to her and mentions a scar on her foot. Sam quickly asserts that there is no scar. Meanwhile, a snooping Ivy listens with glee as the three argue. Pilar lectures Ivy about being so insensitive to others. A drunk Julian is stunned when he finds Sheridan and Luis at his hotel suite door. Relieved that Theresa is in the bathroom, Julian worries that Ethan might find his equally drunk sister with him in his suite. Julian explains that he's in Bermuda to get a quickie divorce from Ivy. Hearing a voice from the bathroom, Ethan asks who his guest is. When Julian panics and starts to resent Ethan's questions, Ethan guesses that he's taking advantage of some young woman. In the bathroom, Theresa finally finishes touching up her make up and prepares to return to the main room. Unwilling to let her burn, Miguel rushes to the boat and heroically rescues Tabitha. Overcome by smoke, Tabitha innocently drops her Timmy doll, leaving him to face the growing flames onboard the boat. Though Miguel tries to stop her, Tabitha runs back to save Timmy.