Mike tells Henry he plans to propose to Katie. Margo gives Katie Simon's death certificate, which she files in court. Meanwhile, a weary Simon returns home and hopes Katie will forgive him. Henry offers to help Mike transform himself to give Katie the most romantic night of her life. After, Mike calls Katie and asks her to meet him at the hotel for a surprise. When she arrives, Mike can't wait and blurts out his marriage proposal to Katie. She accepts. Henry happens upon a sleeping Simon and faints. Chris overhears that Susan is worried about Alison. Holden learns Lily and Dusty uncovered new information and Barbara and Paul are missing. They leave for the station to monitor the search. An unconscious Emily is brought into the ER. Jennifer searches Will's e-mail for any clues to where Barbara may have taken him. A stunned Jennifer comes across an e-mail from Will to Barbara that reveals he is the murderer. Will admits to Paul he killed Rose. Paul is heartsick by Will's revelation. Emily remembers hearing Barbara call for a helicopter. Hal takes off, but is interrupted by Jennifer who tells him the shocking news about Will. Hal bolts from the hospital. Paul assures Will he'll always love him. Barbara pleads for Paul to let them go. Paul holds Will in a loving embrace while the helicopter approaches. He finally releases Will to a waiting Hal. Walker comforts Jennifer, who can't bring herself to tell him what she now knows about Will. Lily, at Dusty's urging, has called the press. Holden bristles. A devastated Hal holds Will, cautions him not to say another word about what happened. He will take Will into the station himself. Barbara and Paul share some bitter words before she's taken off in handcuffs.
Simon tries to calm hysterical Henry. When Henry collects himself, he lets Simon have it for what he put Katie through. Simon explains it took time to get away from Bartleby's crew but he's finally come home for her. Simon asks Henry where Katie is. Meanwhile, Katie and Mike are planning their wedding. Henry lies to Simon, who decides to wait for her at the cottage. Katie returns to feed the bunnies, and Simon sees her and Mike kiss. Carly lets Craig know she's onto him about Mitzi. Craig tries to snow Carly but she isn't buying it. He makes a case for his actions. Rosanna interrupts but hasn't heard anything. She is upset enough about Will. Chris tries to persuade Susan to keep him posted about Alison. Bob tells Chris it's time to let Alison go and move on. Later, Chris discovers that Alison may have lied to him about the date she conceived and about Aaron being the father. Hal arrives at the station with Barbara, Paul and Will. Jack arrests Will. Barbara lashes out at Dusty and Lily. Barbara is booked for assault. When he is questioned, Will explains how he poisoned Rose. He claims he just wanted to make Rose sick enough that she'd cancel the wedding and Paul would stay in Oakdale. He admits he overheard Barbara say that if Rose disappeared, she'd get her family back. Tom agrees to put Will in psychiatric confinement until decisions are made. Will throws himself into Barbara's arms. Barbara is led off to lock up, while Will is taken to the hospital. Dusty confronts Paul.
Alison calls Aaron and asks him to check on Emily for her. Aaron learns that Alison is calling from a place that does abortions. An angry Chris shows up, revealing that he found out Alison switched sonograms and that her baby might be his. Aaron blasts him for his treatment of Alison and says that if something happens to her baby, it's on Chris's head. Later, Aaron heads off to find Alison, unaware that Chris is tailing him. Paul tells Lily and Dusty to give up their hatred before it destroys them. Dusty insists he and Lily did the right thing by going after Paul. Lily has another vision of Ghost Rose and realizes that she won't find closure with Rose's death. Craig pays off Mitzi again and hopes he's in the clear. Jack and Carly try to figure out what to do about telling Rosanna about Craig. Jack leans on Mitzi until she admits she took money from Craig to lie about Paul. Paul laments to Rosanna that Dusty was right; it's his fault Rose was murdered. He warns Rosanna to be suspicious of Craig. Rosanna sets Paul straight, insisting that she loves Craig and vice versa. Paul backs off but Rosanna is less confident of Craig than she appears. Jack informs Paul Craig paid Mitzi to lie about him. Paul won't decide Craig's fate; he has to concentrate on Will. Dusty refuses to cut Molly any slack. Simon is in the other room as Mike and Katie begin to make love. He hears Katie say that she and Mike are getting married. Henry arrives and stops Mike from discovering Simon. He shoos Mike and Katie back to the Lakeview. Despite Henry's efforts, Simon is miserable over Katie's engagement to Mike. At the Lakeview, Simon, in disguise, observes Katie from a distance. Katie sees Simon's face as the elevator doors close.
Simon was at the Lakeview front desk asking for Katie's room number but the clerk refused to give it to him. Meanwhile upstairs Katie, looking like she saw a ghost, pretended like she was coming down with a cold and left a suspicious Mike to go downstairs. Katie approached the desk and asked the clerk about Simon. The clerk assured her that Simon was indeed in the hotel but wouldn't give her his room number. Mike came down looking for Katie but just missed her. Upstairs Simon paid off the maid to open Katie's room. Katie walked in and came face to face with Simon. Simon told her that he was back and would never let her go. Katie fainted. When she came to, Simon was lying next to her stroking her face. Once Katie came to her senses she hugged him and thanked God he was there. Simon said he missed her so much and asked if she missed him. Katie became angry and said, "Do you know what I have gone through?" Katie ran into the bathroom as Simon was trying to explain to her why he was gone so long. Just as he was telling her his story, Mike knocked on the door. When Katie didn't answer he went back downstairs to get the key. Katie went downstairs and told Mike she wanted to go home because she wasn't feeling well. Mike had to go back upstairs to get his keys. Katie tried to stop him because Simon was in the room. Henry came in and helped Katie prevent a collision between Simon and Mike. Upstairs Mike was looking for his keys and noticed the bourbon on the table. Henry came in and covered for Simon. Henry told Mike that he sent Katie home in a cab. Katie said she would call Mike later. At home, Katie called Margo and told her that Simon was alive. Back at the Lakeview, Simon caught Henry and told him he had to get a hold of Katie and needed to leave town with her.
Just as Tom was telling Margo that the charges against Barbara were going to stick a team of high priced lawyers came into the courtroom. The head of the team, Jules, told Barbara that they were going to plead guilty. Barbara refused to plead guilty until her lawyer convinced her that it was the best way to stay out of prison. Barbara pleaded guilty and admitted to the Judge that she broke the law and did it to protect Will. Paul stood in the back of the room as Barbara told the court that she would do anything for her children. Barbara noticed Paul in the courtroom and asked how Will was. Paul said, "He's locked up in a psychiatric ward, how do you think he is?" At that point the Judge told Barbara to stand; she was ready to rule.
At the hospital Will was being held in the psychiatric ward. Hal told Will that no matter what, he will always be loved and that they would do everything possible to get him home. Will was concerned about Barbara but Hal wouldn't respond to his questions. Paul arrived to see him but Will thought that Paul hated him. Paul reassured Will that he didn't hate him. Paul would always be there for him but asked Will to not listen to another thing Barbara said. Hal went outside to talk to Dr. Michaels. She told Hal that they had to put Will in a state run psychiatric facility because they needed to get him as far away from Barbara as they possibly could. Dr. Michaels came in to get Will for their session. Will asked Paul to promise him that Paul would help Barbara. Paul didn't answer.
Jack called Craig into the police station and told him about Mitzi fingering him. Jack got word that Mitzi flew the coup and went to Mexico. Jack let Craig go for now. Carly was there at the station and told Craig he should go tell Rosanna before she hears it from Paul. Rosanna and Lucy were talking about Aaron. Lucy decided that it was time she moved on since Aaron did. Rosanna wanted to know the real story. Lucy told her that she just went out with Clark to try to get over Aaron but has found that she is just not interested in Clark and didn't know how to tell him. Before Rosanna could answer her, Clark arrived to take Lucy on a date. Craig came in and told Rosanna that he was the one who encouraged Mitzi to tell the police that she saw Paul put something in Rose's drink. Craig mentioned the money he gave Mitzi. Rosanna wanted to know if Craig bribed Mitzi. Craig acknowledged he did. Rosanna became angry and accused Craig of trying to ruin Paul's life. Craig said he did it because he loved her, Cabot and Lucy so much and wanted to protect them. Rosanna said one of us has to leave and she walked out.
Alison is about to get to work at the Family Planning Clinic when Aaron bursts in and swipes her gown away from her. He says, "I am not letting you get an abortion!" Alison's new boss intrudes and asks her to get to work. Aaron salts his foot, then sticks it in his mouth. He asks Alison how she plans to take care of herself, and he flips when she tells him she's living at the YWCA. Aaron tells her Chris found out the baby is his, and promises to stand at Alison's side if he tries to take the baby. Alison turns to run away again, but Aaron grabs her and tells her to get back to Oakdale and fight. He knows she will have Susan and Emily at her side. She gives in and asks him to pick her up at the YWCA in a half-hour. After Aaron leaves, Alison grabs her jacket, quits her job, then runs for the door. She opens the door, and Chris is standing there.
Mike hallucinates at Metro. He thinks one Katie is telling him to get lost, while another Katie is telling him how much she loves him. He shrugs both of them off and yells, "Enough!" He snaps back to reality when he realizes he's in a public place.
Margo encourages Katie to tell Mike about Simon, but Katie can't figure out how. Simon walks in and tries to help Katie make up her mind, "I won't let go of you Katie. Not ever again." Margo gives Simon a hug, but then lays into him for how he treated her sister. Katie asks her Margo to give them some time alone, and also asks her to keep Mike away from the house so she and Simon can talk without interruption. Margo reluctantly leaves. Simon apologizes for what happened, but Katie wants an explanation. Simon says he'll give her one, but only after they abandon Oakdale. Katie won't leave, "Things have changed." Outside, Margo calls Mike. She plans to meet up with him at Metro; "There's something you need to know."
Lily brings Luke and Faith to Rose's place, but Luke whines as he wants to go home. Lily tries to put an old scarf of Rose's around Faith's neck, but she pushes her mother away. Lily sends the kids out to play in the snow. Holden arrives and again tries to reach out and comfort his wife. He asks her what it feels like to lose a sister...a twin. Lily cries and shares her heart with her husband, but she feels he'll never be able to empathize. Holden agrees, "Lily you are somewhere that I just can't follow. I need you. The kids need you. Stay with us." She hugs him, but pulls away when he encourages her to let go of Rose. She runs out the door and later finds herself at the Roller Palace.
Lily rummages around the salon looking for pieces of Rose, until she stops and yells, "Where are you!?! Where have you gone without me?!?" Later, someone stops by the salon for an appointment. Lily tells the woman the shop is closed. On her way out, the woman catches a sudden chill. Lily asks her if she needs any help. The woman says, "No, but you do...if you want to reach your sister." The woman grudgingly professes to be a medium between the living and the dead. The woman begins to leave when Lily starts to question her motives. Lily stops the woman and begs her for the message. The woman relents and says, "Rose...she...she wants you to be at peace."
Margo meets Mike at Metro. He thinks Katie sent her to return the engagement ring. Margo says Katie is working through a major issue and she needs the night to be alone. She asks him to stay away from the cottage. Mike thanks her for the advice, but heads over to Katie's after Margo leaves.
The judge hammers her gavel to bring the court to attention at Barbara's trial. The judge recaps Barbara's situation, saying she committed "grave crimes that warrant grave consequences." In what seems to be the shortest trial ever, the judge sentences Babs to ten years in prison. But, after listening to Barbara's measured rants about how she did everything for her children, the judge sends the courtroom into chaos as she decides to suspend her sentence and give her probation for five years. Paul jumps up and demands the judge to reconsider, but she tries to have him restrained instead.
Later, outside the courtroom, Paul presses Tom to get the decision reversed. Tom promises to file a complaint with the state supreme court, but admits the decision will probably remain final. He advises Paul to pull himself together and stay strong for Will. Paul returns to the courtroom where Barbara is triumphantly unfurling her peacock feathers in front of Kim and Jen after her surprise victory. He cuts her down to size and suggests she tryout for the part of Medea in some area production of the ancient play by Euripides. She turns away from her son and explains to Kim and Jen that Paul doesn't understand because he's not a parent. Kim doesn't quite understand either, but she encourages everyone to get along. Paul tells Barbara to stay out of Will's life.
Katie notices Simon is upset. He says he saw Katie and Mike being intimate and it killed him seeing her with someone else. Katie apologizes, but doesn't have remorse. "If it weren't for Mike I would have died. You took away my reason to live, and Mike gave it back to me." She tells Simon she's engaged to Mike. Simon looks like he's been punched in the gut as he says, "But you're married to me." He asks her if she still loves him, but she can't sort through her feelings yet. He holds her head, brushes her cheek, then kisses Katie. For a moment, she holds his head, but as Mike enters the house downstairs, she says, "Stop it." Mike rushes upstairs. Simon says he wants to shake Katie up and keep her confused. They return to a more passionate kiss when Mike reaches the doorway. He rushes up to Simon and breaks the couple apart. Mike is shocked to see Simon's face.
Babs excuses Jen and Kim, then let's Paul have it, "I haven't destroyed Will's life, you have! You have protected him from ever being happy again! I will never, ever let you forget this!" Paul returns the litany, "Get over yourself! You are a sick, self-involved, crazy-lady, control freak! And one day Will will realize that." After a slimy retort from Babs, Paul limply professes his hate for his mother. She whispers back, "You don't hate me. You hate yourself." Jen returns as Paul promises to punish his mother for her bad behavior. Barbara says Paul used to throw similar fits when he was a young boy, saying his Mommy was bad. Paul twitches at the thought of his childhood as Barbara turns the screw deeper into his psyche. She sidles up to her son and whispers at his ear, "And I'll tell you now, what I used to tell you then...‘Don't worry darling. I know deep down inside, you still love me.'" Paul fumes and wretches all at once.