At the gala Casey wondered where Adam was and went about finding a place for Gwen to sing for him. Lisa would let Gwen sing in the lounge. At Java Adam chatted up Jade to get her to go to the dance. Jade declined saying that his brothers hated her and it was better if she didn't go. Adam suggested if she was in costume, how would they know who she was? Later Adam and Jade arrived and Adam took a rain-check on hearing Gwen sing since he had a hot date. Jade ran into Luke and Maddie literally ran into Jade and recognized her voice. The teens saw that she was Adam's date.

Also at the dance, Lucinda asked Katie to write a new version of "Oakdale Confidential" and not be anonymous. Katie talked it over with Mike and he said it was fine. She could write from home and take care of the brood.

Vienna asked Carly if she was sleeping with Simon after Katie told Vienna Carly was. Carly told Vienna Simon called her name out in his sleep after a long night of passion, and confessed later that Vienna was the love of his life. Vienna jumped on Simon and soon excused herself from the party for an hour. She and Simon went upstairs.

The Prince flattered a lone Carly and asked her to go for a ride with him. As all this fell into their jewel thievery plans, she agreed. Upstairs Simon and Vienna drank champagne and Vienna informed Simon she wanted to make love with her diamonds on. The Prince and Carly speeded down the streets of Oakdale. Dr. Bob told Jack where Carly went to and Jack ran out of the Lakeview.

Craig didn't appear from the disappearing act. Everyone searched and speculated where he could be. Dusty went upstairs to check on Johnny. Babs and Lucy soon followed. Johnny was safe in Chaz's care. A paranoid Dusty went out to see if he could find Craig.

A manager informed Meg one of the guests felt ill and needed attention. He showed Meg the room and Craig was there. Meg asked what was going on and Craig said it was all set up so he could spend time alone with her. Meg turned to leave and Craig grabbed her and planted a big kiss on her. She wriggled away and told him to never do that again as she ran out the door. Later a messenger knocked at Craig's door with an envelope. Craig tipped him and opened the envelope which contained legal papers.

Back at the suite Barbara accused Lucy of being in cahoots with her father. Chaz told Barbara to hush for the baby's sake and when she didn't, he threw her over his shoulder and carried her out of the room. Lucy was left holding Johnny. There was a knock at the door. Lucy answered it and her smiling father stood in the doorway.

At the party, Dusty realizes the man he's tackled is a decoy as a stunned Lucy finds Craig at the door. Dusty then shows up and accuses Craig of luring him from the baby and demands his arrest. But Tom reveals to everyone that Craig now has a legal right to be with Johnny, although Dusty will retain full custody. Meanwhile, a suspicious Paul wonders what happened between Meg and Craig. Adam is impressed when he hears Gwen sing, and Will realizes that he wants to put all his efforts in to making Gwen a star. Casey and Maddie find themselves ready to be intimate, but a slasher look-a-like cuts things short. Luke finds Jade crying, as Adam approaches wanting to know what she did to make everyone so mad. Later, Carly is mortified when Jack pulls her and the Prince over and escorts them back to the party. Carly tries desperately to preoccupy the Prince, but when he's alerted to Vienna's whereabouts he rushes off. Carly arrives just as the Prince finds a naked Vienna passed out in Simon's bed, and he tries to cover. The Prince's handler removes Vienna still wearing the jewels, and Carly blasts Simon for putting her at risk for nothing. But when he produces the authentic jewels, Simon and Carly's excitement get the best of them and they begin to make passionate love.

In Simon's room, Carly and Simon are kissing, when Carly stops to ask Simon if the jewels they have just stolen from Vienna are real. Simon assures her they have the real diamonds and Vienna has the fakes and the two continue to kiss and make love for the first time. As Carly and Simon talk about the good time they just had, Vienna knocks on the door and demands to be let into Simon's room. Simon rushes Carly into the bathroom and invites Vienna into his room. Once there Vienna declares her love for Simon and tells him she has left the prince and his jewels to be with him. Suddenly, across the room, something catches Vienna's eye and Simon is afraid she has seen the necklace, but she has really seen Carly's shoe. Vienna confronts Simon about the shoe and to stop Vienna from finding the necklace under the bed, Simon pulls Carly out of the bathroom where he admits to both of them that he might just love Carly. Shocked by Simon's revelation, Vienna leaves and Carly seems flustered and concerned that what has happened between them meant too much to Simon. Carly leaves Simon's room to go home.

Back at the dorms, a co-ed bursts into Casey's room and surprises Casey and Maddie dressed in a costume that resembles the slasher. Casey grabs the guy and begins to scream at him, throws him to the ground, and begins to punch him. Maddie pulls Casey off the kid and he jumps up and runs out of the room and Casey and Maddie argue over Casey's behavior. Maddie tells Casey she was surprised and not scared and that she doesn't want to be treated like a victim. Casey admits to Maddie that he is frustrated that he couldn't keep her safe (even though he didn't know her when she was attacked) and that he doesn't always know how to act around her because she was raped. He tells her he wants to be with her all the time and in response Maddie walks up and kisses Casey.

As the ball winds down, Gwen and Will discuss cutting a demo tape of her singing and Gwen tells Will she is concerned about being around Adam if Jade is going to be a part of Adam's life. Gwen and Will leave the party and go back to her dorm where the two spend some time alone.

Outside the ball, Luke finds Jade and tells her it is time to leave and she takes a ride home with Adam. Jade and Adam return to Lily's house where Adam asks Jade to tell him what happened between her and Will. Jade tells Adam her side of the story and Adam tells Jade she was wrong and asks Jade if he can see her again. Jade says yes.

Luke runs into Lucinda who recognizes Jade and insists on calling Lily to let her know Jade lied again about going to the ball. In the bar at the Lakeview, Lucinda and Luke discuss Jade and her lying to Lily again. Luke tries to convince Lucinda not to tell Lily what Jade did.

As Dusty gets ready to leave the ball and take Johnny to his room with Lucy, Barbara accuses Lucy of knowing about her father's plans to get the restraining order lifted so he could see Johnny again. Dusty immediately tells Barbara to stop going after Lucy and lets her know that if she doesn't stop accusing Lucy she will not see Johnny anymore. Dusty explains to Barbara that he wants Lucy around and if she is uncomfortable with that he will have to leave Barbara's home with Johnny. Barbara says she is fine with Dusty's decision and as he goes up to the room with Lucy, Barbara goes back to the ball to say goodnight to everyone. Upstairs, Lucy apologizes for Craig's behavior and Dusty reassures her it is not her fault. Lucy asks Dusty to let her help him keep Johnny away from Craig. Lucy admits to Dusty she wants to stay with him, but has to get back to her date at the ball. Before she leaves the two share a special moment but don't kiss.

Out in the lobby, Paul and Meg argue about Craig's intentions with Meg and Johnny. They fight about Paul wanting to help out Dusty against Craig. Meg, who is frustrated by Paul putting everyone and everything before her, refuses to stay and leaves Paul to take care of his personal matters on his own. At the same time, Emily defends her betrayal to Craig by telling him she will do anything for Johnny, even if it means telling Dusty what Craig is up to, this seems to please Craig. Craig tells Emily that Dusty will not end up with either his son or his daughter, Lucy, and then taunts Emily about Paul and Meg being together. Emily and Craig return to the party where Meg is saying goodnight to everyone. Paul walks in and asks for everyone's attention and then to prove to Meg how much he loves her, he gets down on his knee to ask her again to marry him and she agrees and the two share a dance. Emily is crushed by this sight and Craig seizes on the opportunity to get Emily on his side by comparing their situations; the loss of her newborn daughter and the loss of his son, Johnny. Emily asks what she has to do to help Craig break-up Paul and Meg and Craig tells her to just keep feeding Dusty information.

Will and Gwen were leaving her dorm room and ran into Adam, who had come to visit Casey. Will asked Adam to produce Gwen's demo and he'd put up the money for it. Adam agreed but they would have to deal with Jade. Gwen went off on him and told Adam there was no way. She even accused Jade of bedding him. Adam left. Gwen then regretted her rash actions. Will reassured her they would find a way to get the demo done.

At the Snyder household Lucinda beat Jade to the punch telling Lily that Jade attended the dance. Lily and Lucinda hound Jade about not telling anyone where she went and what a bad idea it was to go with Will there. Jade defended herself revealing Adam Munson asked her to go. Lily said Jade was using Adam to get to Will. Jade denied it. Everyone left but Luke and the doorbell rang. It was Adam.

Over breakfast at the Lakeview Katie told Mike she felt nauseous and may be pregnant. Mike got a call and left. Vienna showed up and told Katie about finding Carly and Simon post love-making. Katie asked if they really had sex and Vienna confirmed it. Katie got upset and Mike came back. Vienna announced she was leaving Oakdale to lament her loss of Simon. Mike told Katie he was offered a high-paying job in Chicago. Katie didn't want him to go. They planned on getting a pregnancy test before going home, just in case.

Jack went over to Carly's to pick up JJ. Carly was on the phone with Simon and he informed her that he had fenced the jewels and was ready to rendezvous again. Carly ended the call because Jack was standing right there. Jack asked her if everything was alright and that she can come to him for anything. Before things went further, JJ came down the stairs and he and Jack leave. As soon as the door closed Simon was there with a briefcase of money. Simon informed Carly the loan shark had been paid off and the cash was their spoils. They kissed and Jack happened to see them through the window. Jack knocked and asked to speak to Carly alone. Jack told them he saw them kiss and wanted to know what was going on between them.

Craig told Emily he was meeting with his lawyers and she had to tell Dusty. Craig left. Dusty and Lucy came down and Emily ran over to tell them about Craig's meeting. Emily suggested Dusty leave town with Johnny. They went upstairs to pack. Craig and Tom showed up and ran into Dusty and Johnny as they were leaving. Tom told Dusty Craig received temporary visitation rights with his son. Dusty refused to hand the boy over. A marshal stepped in. Dusty relented. He finally handed Johnny over to Craig to avoid any danger or trauma for the child. Dusty and Lucy left. Craig coddled Johnny and told Emily she had something else to do for him. Close by, Dusty told Lucy she was the only way they could protect Johnny from Craig.

At Java, Gwen and Will fill Casey in on their disastrous meeting with Adam. Casey decides to call Adam to try to get him to produce Gwen's demo CD. Meanwhile, Adam is at the Snyders, telling Jade goodbye, having told her that he and Gwen did not click well enough to work together; Jade was amazed to hear someone actually sound like they might be criticizing Gwen, whom she says people think is "sheer perfection." Adam invites Jade to come see him if she's ever in LA, and Jade says goodbye and goes inside the house. Luke asks who that was, and she tells him it was a nice, good-looking guy who's now leaving town.

After telling Jade goodbye, Adam gets a phone call from Casey and ultimately agrees to give him 5 minutes at Java to talk about the situation with Gwen. When he arrives, Gwen suggests that perhaps Adam should have given some more consideration to his brother, Will, with regard to the whole situation with Jade; Adam disagrees, saying he doesn't want this to be about Jade and that he can only work with Gwen if she can put everything else aside and be professional. Will gets upset, but Gwen asks him and Casey to let her talk to Adam alone. After discussing it further, Gwen agrees that she can work with Adam so that she can have her chance at a singing career. When she gives Will the news, he tells Adam he's glad to hear it, because he didn't want to have to hate him; Adam tells Will to hold that thought, because this is the music business he's talking about.

At Carly's house, when Jack says J.J. has been asking about her relationship with Simon, whom Jack just saw kissing Carly, Carly tells him that it's strictly business, and then she tells Simon that she doesn't appreciate him deciding for her that he could stay during this conversation and tells Jack she doesn't like the idea of him discussing her relationships with a 10-year-old child. Jack apologizes for grilling her in front of Simon, then he leaves. Simon is upset that Carly told Jack it was just business between them, but she tells Simon that what she told Jack was the truth: it is strictly a business relationship, despite the 1-night stand they just had. Carly tells him it could never work with them because he's too much of a free spirit and she has 3 kids, but Simon thinks she uses the kids as an excuse, that she's still hung up on Jack and keeps him in the picture to keep her in line. Simon tells her maybe he's the one who knows who Carly really is, and saying he can prove it, he pushes her against the door and kisses her fiercely. Carly breaks away and again insists it's just a business relationship; upset, he grabs his briefcase and says, "Fine, whatever --- you drive me crazy!" and he leaves. Carly takes a moment to remember their night of passion, and she says to herself, "It's just business ... Who am I kidding?" Picking up her phone, she calls Simon and leaves him a message, saying she's thought about it and realizes she lied to Jack when she said it was just business; she tells him that she does care about him and wants to see whatever this thing is through. Jack, who has come back to her house, stands with the door half open, listening.

Katie's pregnancy test turns out negative, and she becomes a basket case, whining to Mike about how maybe she's just not meant to be a mother. Mike raises his voice, telling her she's making it sound like a baby is a reward for good behavior, when it's not; he says the only way to prove you deserve to have a child is by loving it and taking care of it after it's born. He tells her if he heard someone else talking to her the way she's talking to herself, he'd have to hit them. Katie calms down and realizes Mike is right, and she reminds him that they had agreed he should take the job in Chicago if she wasn't pregnant. When she tells him to go and says he'll have a sane wife when he returns, he asks her jokingly, "And where will YOU be?" He kisses her goodbye and leaves for his Chicago job. Katie goes to the closet and takes out her box of wedding memorabilia from her marriage to Simon; handling each item, she has good memories of her time with Simon, but she tells Snickers that she has to let this go, once and for all. She gets up to take the box to the trash, but when she opens her door, Simon is there, about to knock.

Paul goes to the hospital to see Meg, and they talk about honeymoon plans and possibly eloping. Meg spies Craig outside, holding Johnny, and she gets Paul to leave, saying she needs to get back to work. Craig, having overheard their conversation, calls Emily and tells her that Paul is on his way to Java. Hanging up, Craig walks up to Meg, who tries to call security, but he tells her he has a court-ordered visitation with Johnny, and when she asks to see the papers, he shows them to her. He tells her he's brought Johnny to the hospital for a checkup with Dr. Lake, so that he can find out exactly what it was that had made Johnny so sick, how it had been cured, and whether it could ever happen again. He then asks Meg to go to the appointment with him, to explain things to him if he doesn't understand them and to help with Johnny. Meg asks him why he doesn't just ask Lucy these things, but he says he wants to hear it from a third party, and he trusts her; he also tells her that although he knows it drives her crazy, he likes her. Meg ends up agreeing to go to the appointment with him, but then Paul returns, having found out from Emily that Craig had gotten a visitation with Johnny and was probably at the hospital. Paul confronts Craig, and Meg takes Johnny away from their arguing and answers a phone call; she tells Craig that it was Dr. Lake, and the appointment has to be rescheduled. Paul tells Craig that he'll only get custody of Johnny "over my dead body," to which Craig replies, "Whatever." Craig then thanks Meg for listening and leaves with Johnny. Paul wants to know why it seems like every time he turns his back, she's alone with Craig. Meg tells him he needs to stop obsessing over Craig and Emily and everyone else. Paul tells Meg that he feels like Craig is targeting her for some reason, but he agrees not to talk about Craig anymore; he then tells her that she's not to talk to Craig again. Meg tells him that she won't let him control her and order her around like that.

At the Lakeview, Dusty tells Lucy that the only way to ensure Craig can't get custody of Johnny is to have him put him in prison, and he tells Lucy that if she'll go to court and file charges against Craig for kidnapping her, he could be sent to prison for that crime. Lucy tells Dusty he's beginning to sound just like her father, and then she tells him she thinks Craig is just trying to goad Dusty into doing something drastic; she says she thinks there's a better way to handle her father. Craig comes in with Johnny and hands him back over to Dusty, who immediately takes him upstairs; Craig then tries to get Lucy to stay to talk to him, but she tells him he's pushing too hard and may push hard enough to lose the right to see Johnny at all. When he asks what she's talking about, she tells him that if he doesn't drop his plans to try to get custody of Johnny, she'll go to criminal court and file charges against him for kidnapping.