Jade, who's bought a pregnancy test, calls Will and Gwen to the cottage so that she can prove that she's pregnant. Gwen feels humiliated and leaves but later, Jade exits the bathroom with a positive test. A depressed Will lets Jade spend the night on the couch while Gwen commiserates with Maddie. Jack tells Carly that they have to lay down some ground rules about her relationship with Simon. Meanwhile, Lucinda meets Simon for a business meeting. He wants her to invest in his building and she ultimately agrees. Later when Simon tells Carly the good news, she reveals that Jack tried to warn her about Simon, but she defended him and Simon is grateful. Later, however, Lucinda informs Simon she has to back out of the investment and Simon can't bring himself to disappoint Carly. Meg gives Craig's gift back but Craig baits her, saying deep down he knows Meg is happy that Emily and the baby are out of her life. Meg blasts Craig and would exit but he collapses and she tends to him. Dusty insists that he can't trust Lucy with Johnny because she's Craig's daughter. Lucy protests her innocence, but Dusty won't budge and exits to call the cops on Craig for coming too close to Johnny by moving into the Lakeview. Jack arrives and puts Craig under arrest. Lucy persuades Jack not to arrest Craig due to his condition but assures him that Craig will move out and away from Johnny as soon as he is better. Meanwhile, Emily learns that Craig is back in town and vows to never be victimized again, as she was with Paul.
Lily comes home from the hospital and questions Holden and Lucinda about finding Rose's daughter Theresa. They learn it will take six months to get a court order to find her and Lily is upset. When Rose comes to Lily again in a vision, urging her to find Theresa, Holden leaves on a mission. While Paul tells Will that Craig Montgomery is back in town, Gwen comes face-to-face with Craig and slaps him. Paul opens up to Will about his grief over losing the baby and urges Will not to give up on Gwen. Later, after slipping out to her doctor's appointment, Jade shows Will a sonogram of their baby but Will questions why the sonogram was taken at Memorial if Jade is a patient at the free clinic. Carly makes Simon squirm when she praises his professionalism and apologizes that she had him pegged all wrong. Carly asks for her paycheck and Simon empties his pockets. Later, Simon gets money from a loan shark but panics when Carly arrives and spots them together. Emily meets with Craig to discuss The Intruder. Emily expresses her sole desire to reestablish herself as a professional and is stunned when Craig offers to make her a partner at the newspaper. Emily tells Craig she'll think about his offer.
Maddie and Casey continue their playful food fight at Casey's dorm room and just as they are ready to kiss, Elwood walks in and tries to join in on the food fight. Casey squirts Elwood with mustard to get rid of him and then locks the door and turns his attention back to Maddie. When she sees him lock the door, Maddie becomes nervous and Casey reassures her she is o.k. and can leave, but Maddie says she wants to stay with Casey and the two kiss.
Gwen tells Will to quit trying to prove that Jade is faking her pregnancy. Will begs Gwen to listen to him so that they can save their marriage. Will tells Gwen about the sonogram and that he thinks Jade is faking the whole pregnancy. Will says he is going to call Jade's doctor and that he wants Gwen there when he makes the call. Will calls the doctor's office and is told that Jade just left and everything is fine. Gwen informs Will that their futures don't match up and she can't be this unhappy and he needs to leave her alone. Will tells Gwen he won't give up on them and she says as long as Jade is having his baby she can't be with him. Will leaves Gwen alone to cry in her dorm room.
Back at Will's house, Holden asks Jade for help finding Rose's daughter Teresa. Holden explains to Jade that Lily needs to find Teresa and he needs her help. Jade agrees to help Holden and gives him Teresa's phone number. Jade asks Holden to let Lily know she helped out and he agrees.
At Lily and Holden's house, Lucinda confronts Lily about seeing images of Rose. Lily explains to Lucinda that Rose needs her to find Teresa and Lucinda tells Lily to face the reality that Rose is dead and Lily has a family to raise. Lily reiterates that she needs to find Teresa for Rose and for herself. Lucinda tells Lily her priority should be her family and not her long lost niece who may not want to be found. Holden returns home and tells Lily he has a phone number that may be Teresa's. He explains he got the number from Jade and that she did it to help Lily, but that the number may not be good. Luke and Lucinda leave Lily and Holden alone to talk and Lily asks him to call Teresa. Holden calls the number and learns that Teresa left the number Jade gave them about a year ago and didn't leave a forwarding address or phone number. Holden says he will help Lily, but tries to prepare her for the reality that the search may take some time.
Lucy finds Craig downstairs at the Lakeview and she discusses her concerns about his health and her fear that he will go to jail if Jack or Dusty see him there looking healthy. Craig explains to Lucy that he is downstairs to get some broth and because he hates being in his room. Lucy seems to believe him, but we see a waiter approaching with wine and Craig goes into a fake coughing fit and signals the waiter not to bring the wine. After Craig's pretend coughing attack subsides, Craig says he will go to his room and Lucy leaves. Instead of going to his room the waiter brings over the wine and Craig enjoys a drink. The entire time Lucy is watching and she sees what her father is up to and calls Jack. At the Lakeview, Simon leaves Carly to talk to the supplier and goes upstairs to get his money. Carly runs into Craig and she throws wine in his face and then reminds him that Rosanna is in a coma. Carly tells Craig that he ruined both of her sister's lives and that if he insisted on staying she would make his life hell. A shaken Carly then goes out to call Jack, but runs into him instead, but decides not to tell him why she is upset. Lucy then walks into the dining room and confronts her father and tells him she knows he was faking his attack. Jack then comes in and thanks Lucy for calling him and tells Craig he has 24 hours to move out of the Lakeview. After saying good night to Lucy, Craig agrees to leave the Lakeview.
Carly confronts Simon about his conversation with Spiro, the loan shark. Carly express her disapproval and warns Simon about Spiro's fondness for breaking kneecaps. Carly assures Simon if he does business with Spiro she will never do business with him again. Simon then receives a phone call from Spiro letting him know he is at Simon's apartment and if he wants the money he needs to meet him there now. Simon tries to shake Carly by telling her he has an appointment with his lawyer, but Carly insists on going with him to discuss their budget. Simon gets the money from the loan shark who runs through the brutal terms of his "loan". As Spiro is ready to leave Carly knocks on the door and Simon has Spiro hide. Simon goes out to the hallway to talk to Carly and she asks him why they are in the hall.
Carly senses something is amiss with Simon and asks if he's with a woman. Simon puts Carly off then goes to take cash from the loan shark who warns Simon he has thirty days to pay it back. Later, Carly charms the bellboy into letting her into Simon's room but Jack, who has come to question Simon about the loan shark he saw him with, finds her there. Barbara physically attacks Chaz, the bodyguard Dusty hired for Johnny – mistaking him for one of Craig's thugs but she is appreciative of Dusty's efforts. Meanwhile, having discovered Craig's ruse about being ill, Lucy calls the cops on Craig and he leaves the Lakeview. When Jack tells Dusty that Lucy is responsible for sending Craig packing, Dusty admits he should cut Lucy some slack and goes to apologize. Emily walks in on a happy Paul and Meg making wedding plans. Fighting tears, she starts to run out but Craig stops her. He advises her not to let everyone get to her and encourages her to sign up as his partner. She agrees. Luke urges Will to step up as the father of Jade's baby and Will agrees. Later, a woozy Jade collapses in Luke's arms but when he tries to take her to the doctor's, Jade refuses.
At Simon's room at the Lakeview, Jack tells Carly that he saw Simon downstairs with the loan shark, Spiro. Carly tells Jack that she told Simon who Spiro was and warned him to stay away from him, and Simon agreed. Jack is dubious about this, saying he thinks Simon is making a deal with Spiro, and he doesn't like that because it puts a "bad guy" in the same orbit as Carly and their kids. Carly insists that Jack's wrong about Simon's involvement with Spiro, but when he goes so far as to suggest that possibly it was Carly who put Simon in touch with Spiro, she opens the door and asks him to leave. As they continue arguing, Simon walks up and tells them he can hear them all the way down the hall. Jack warns both Carly and Simon to keep their eyes open, and Carly tells him her eyes are finally open now. Jack says his are, too, and he'll be watching them. Jack leaves, and Carly asks Simon to tell her that Jack was wrong; Simon tells Carly he's not involved with Spiro at all, and he says Jack doesn't care about that, he just cares about the fact that he found Carly in Simon's room. He tells her he'd love to hear what she was doing sneaking her way into his room, and she tells him she's not sure anymore, but she was actually upset thinking that he might have had a woman in his room earlier when she came by. She tells Simon she doesn't want anyone else to be with him but her, and they kiss. As they fall onto the bed, Carly accidentally kicks open Simon's briefcase, and money comes flying out. Irate, she tells Simon that her brain isn't mush and she knows this means he's dealing with Spiro. She tells him if he brought Spiro into her life, he'd better get him out of it, too.
At the Lakeview, Dusty apologizes to Lucy for doubting her before, telling her he heard that she gave Craig the boot from the Lakeview and that he trusts her. Lucy says she's glad she passed "the latest loyalty test," but she's not sure she trusts Dusty anymore. She tries to leave, but Dusty talks her into going to dinner with him; he tells Barbara he's going out to eat, and she sees that he's leaving with Lucy. They go to Al's Diner, where they sit in Dusty's car, eating. Dusty tells Lucy that he'd been trying to put his life back together when Craig arrived and made him crazy. He tells her he should have known that he couldn't have a better friend than Lucy, and when she asks if friends is all they are, he kisses her. After the kiss, though, Lucy can see how conflicted Dusty is and says, "Too soon?" Dusty agrees that maybe it is too soon.
Emily joins Craig for dinner at the Lakeview to "celebrate" their new partnership at the Intruder, and she realizes that he had not heard about her baby's stem cell donation to Johnny, which saved his life. Craig thanks her for her selfless gesture and then says that perhaps he can do something to honor Johnny's recovery, since he's not allowed to actually be near Johnny. Spotting Bob and Kim Hughes, Craig asks them to join him and Emily, and he tells them that he wants to fund a research program at Memorial Hospital to help kids like Johnny. He tells them he'd like to call it the "Jennifer Donovan Research Foundation," in honor of Johnny's mother, but Kim says he's crazy if he thinks Jennifer's family will agree to lend Jennifer's name to anything that involves Craig. Bob tells Craig to submit his ideas to the hospital's board for review, and he and Kim leave. Emily calls Craig's idea "the perfect olive branch" and a "rat trap," because as Craig points out, it will put Barbara, Dusty, and Paul in the position of deciding whether holding a grudge is more important than advancing medical science. Emily tells Craig there's not a chance Paul will let him name the foundation after his sister, and she says that instead, he should name it the "Jennifer Stewart Ryan Foundation," after her daughter. Meanwhile, Bob and Kim have gone upstairs to warn Barbara about Craig's plans for a foundation; when Barbara says she'll fight Craig to the death over the use of Jennifer's name, Kim says a fight might be just what Craig is hoping for.
At Will's house, Luke is concerned about Jade's nausea and fever and insists she needs to go to the hospital. She tells him that if he promises not to call Will, she'll go with him. Luke takes her there, but while she's waiting to be examined, he calls Will and leaves a message for him about Jade's condition. Jade's doctor, an ob-gyn, comes in and asks her about her symptoms, then tells her there's a virus going around, and he'll prescribe medication for some of the secondary effects of the virus. Luke asks if that's safe, and the doctor tells him it's perfectly safe, then leaves. Jade asks Luke to get her a soda, but when he leaves her room, he sees her doctor and again asks if it's safe to give Jade a prescription when she's pregnant. The doctor says Jade's not pregnant, and when Luke persists, the doctor tells him he'd have noticed a pregnancy when he examined her this morning. His beeper goes off, and he excuses himself, putting down Jade's chart and walking away from Luke. Luke picks up the chart and marches into Jade's room, where he tells her he just found out from her doctor that she's not pregnant. She insists that she is pregnant and that the doctor has made a mistake, but Luke tells her he has her chart in his hands and it says nothing about a pregnancy. He tells her she's lying, but he wants to hear her say the truth out loud, so he asks her, "Are you having Will's baby?" Jade, crying, turns and says, "No, I'm not!"
Will has gone to Crash, looking for Gwen, who walks in a minute later with Gill and Elwood. Maddie comes in, and Gill announces the arrival of "Raven Lake 2 --- the sequel," but Gwen puts a stop to that and apologizes to Maddie for Gill's remark. The guys leave to get drinks, and Will overhears Gwen telling Maddie about a guy in her music class who is a great keyboard player and is easy on the eyes; she tells Maddie she needs to concentrate on starting her life over again, "without the drama." Elwood comes back and tries to get Gwen to dance with him, but Gwen says she's already promised the next dance to Gill; while they're dancing, Will's cell phone rings, and he tries to leave quietly to answer it, but a girl from college sees him and calls his name. Gwen sees him then, too, and follows him outside. He tells her that no one else in his life is as important as she is, that everything else is a distant second; when she asks if that includes his unborn child, he says there's no way to answer that without sounding like a heel. He tells her to rejoin her friends, and she goes back inside; he checks his messages on his cell phone and hears Luke's message that Jade is at the hospital and that he should get there as soon as he can.