As Paul waits at the airport for his plane to Santo Domingo, he sees Barbara, who tells him that she is on her way to Paris. Paul tells Barbara that he is certain that she is somehow behind both Rosanna's hauntings and Rosanna's disappearance. Barbara dramatically says to Paul, "I'll tell you all about Rosanna."
Casey brings Celia and Will home for lunch with his parents. They discuss Celia's enrollment in Oakdale Latin and, at Will's urging, Celia makes an insincere apology for the trip to Chicago. Later, Tom and Margo joke about their reservations about Casey's first girlfriend.
Holden arrives at home and tearfully begs Lily to tell him that she did not kill Julia. Lily looks Holden in the eye and insists that she had nothing to do with Julia's death. Holden receives a call from Jack asking him to come help with J. J., and he and Lily leave. Luke pulls Lily's gloves (which he had told her that he had burned) out of his backpack and says, "Don't worry, Mom, I'll take care of everything."
Keith arrives at Carly and Jack's house and announces that he is J. J.'s legal guardian, and that he intends to take J. J. and leave Oakdale immediately. Jack refuses to let J. J. go without seeing documentation of Keith's claim, so Keith leaves to get the documents.
Jack has to leave because of a new development in Julia's murder investigation, and he asks Holden to come help Carly with J. J. When Jack arrives at the police station, he finds a woman named Joan Becker, who has information about Julia's death. While Jack is gone, Holden and Lily arrive to help Carly. Lily is getting slightly hysterical once again and starts out the door, and runs right into Keith. Jack comes in right after Keith and announces that he is taking Keith in to the police station, because he has information that Keith killed Julia. Carly and Lily gape in amazement.
Barbara is taking a few moments before her flight to Paris to torment Paul with a letter in Rosanna's handwriting which she says was delivered to her that very morning. Barbara is surprised when Paul asks her to read it. The letter is a vindictive explanation of why Rosanna has hurt both Barbara and Paul. Shocked and hurt, Paul tears up the airline tickets he believed were sent to her by Rosanna and storms out of the airport. Barbara is very upset that she had to hurt her son in this way. James -- dressed as a chauffeur -- creeps up behind her and tells him that she will not do him any more favors, that hurting Paul was bad enough. But Barbara knows by now...James always has one more favor to ask.....
Jennifer is up to her ears in last minute details for that evening's StreetJeans fashion show and reception -- and she loves it! Mike enters and wants an explanation as to why she slept at the office that night. He tries to convince her that he really cares about her, but Jennifer cannot forget about seeing him and Katie together at Metro. Craig sees the disagreement and calls Henry. Craig tells Henry that, if he really loves his wife, he must do something quickly to get Katie back to Mike. While talking with Katie about their lack of sex life, Henry begins to have chest pains and is rushed to the hospital. The act does get Henry attention from Katie -- but the doctor is unimpressed. He tells Henry that all he had was an anxiety attack and that he needed to go home. But Henry lies to Mike and tells him the doctor has told him he must go to see a specialist in New York and insists that Mike take him to the airport. Mike agrees, but realizes he is supposed to be with Jennifer at the fashion show that evening. Jennifer tells him he should take Henry instead of joining her on her big night.
Keith barges into Carly's home demanding to take JJ with him, but Holden has come to help Carly, and he tries to reason with Keith. He doesn't get far before Jack walks in and informs Keith that Jack has just talked with a witness that saw him getting into Julia's safety deposit box with forged documents instead of in Chicago, as Keith claimed. Jack wants an explanation and takes Keith to the police station. Carly panics as Jack leaves -- no doubt remembering the last time he left their home with a suspect -- but Holden assures Carly that he will follow them to the police station and make sure they arrive safely. Lily is in shock with all she has heard, but still insists that Julia's death is her fault. Carly insists that Keith is guilty and that Lily must stick to her original story.
Jack's case against Keith is growing -- a witness comes to the station and says that Keith was the man she saw banging on Julia's apartment door the day Julia was killed. Jack has caught Keith in yet another lie -- one too many. As Jack arrests Keith and reads him his rights, Holden looks on with anger......
Aaron and Alison are getting ready to host the Street Jeans' press party at Metro and Aaron is becoming increasingly upset that Rafi is never around when he needs him.
Meanwhile, Rafi and Celia are meeting with Sierra and Dusty when Sierra reports the good news that Celia's visa has been approved and she can start school. Celia is elated but when Sierra tries to give Celia money for school clothes, proud Rafi objects. When Sierra clarifies that the money is a loan, Celia grabs it and hurries off as Dusty and Rafael finally have a heart to heart about the boxing fiasco.
Meanwhile, Jennifer is anxiously preparing for her big presentation, explaining to a concerned Mike that she isn't angry he has to give Henry a ride to the airport. Craig, delighted to see the gulf between Jennifer and Mike widening, lauds her handling of their Street Jeans event and tells her she deserves to bask in the spotlight. Meanwhile, Barbara finds out from James that Craig and Jennifer conspired to get her out of town because Jennifer doesn't want Barbara anywhere near Street Jeans. Outraged, Barbara cancels her trip to Paris, and heads to Oakdale, determined to crash Jennifer and Craig's party. Later, as Jennifer begins her presentation to Sierra, Dusty, Lucinda and the fashion press, Barbara bursts in, determined to steal the spotlight. But, Craig quickly whisks her away and tells her that after the stunt she just pulled, Jennifer may never speak to Barbara again. Meanwhile, Jennifer recovers and cues Blue County to begin performing while a slide show of Mike demonstrates the Street Jeans inventory. After the presentation, Jennifer confronts her mother, but an unapologetic Barbara warns Jennifer if she's thinking of hitching her wagon to Craig's star, her life as she knows it is over. Meanwhile, star struck Celia sees an opportunity to make inroads in the music biz and enlists Casey's help in recording an impromptu demo tape she can give to Scott Reeves. She later thanks Casey with a kiss.
Henry, intent on giving Katie and Mike the time and space they need to reconnect, talks Katie out of accompanying him on his trip home to see his family. Later, when Mike gives him a ride to the airport, Henry urges him to look in on Katie as often as possible while Henry's away. Mike leaves and Henry gets a call from lonely Katie telling him how much she misses him. Henry then gets settled at the airport, calls Craig and lets him know in no uncertain terms that if Mike and Katie don't get together soon, he's reclaiming his wife. Later, off Henry's urging, Mike shows up at Katie's and finds her in tears. She confesses that something she said may have caused Henry's panic attack.
Henry is sleeping in the airport. A security guard wakes him up and tells him all flights had left for the night. Henry slowly comes to and says to himself that Craig better know what he's doing. Henry calls Craig and wants to see him. Craig arrives and Henry asks him how much he is willing to spend to make Katie happy. Henry says he is making all the sacrifices so Craig could afford to spend the bucks. At the cottage, Katie and Mike were talking about how Katie treats Henry. Katie admits that she loves Henry but not in the way that Henry would like. Katie said she forced Henry into this marriage and now she is breaking his heart. Katie feels she is to blame for his chest pains and tells Mike he has to help her. Mike tells her that she needs to end the marriage because she has nothing in common with Henry and it isn't fair to him. Mike wants her to stop thinking about what Henry wants. He wants to know what Katie wants. Katie finally breaks down and tells Mike that she is still in love with him. To Katie's surprise, Mike feels the same way but they both agree that they can't hurt Henry and Jennifer.
Craig is talking to Sierra and tells her he notices how she and Dusty look at each other. Sierra blows it off but Craig reminds her to think how Lucy would feel if she found out her mother and ex-boyfriend were an item. Sierra says the nothing is happening between her and Dusty but later tells Dusty that they need to keep their distance, effective immediately.
Barbara was trying to warn Jennifer about Craig and how he manipulates women. Barbara also tells Jennifer that they could be great together. Jennifer says that Barbara is a liability both professionally and personally and Jen is sticking with Craig. Barbara takes offense and says Jennifer will be sorry when Craig takes everything from her. Jennifer goes to see Craig but runs into Dusty. Dusty tries to warn her about Craig. Jennifer has had enough and tells him to mind his own business. Later, Craig arrives to find Jennifer in his room. She had been drinking and starts unloading all her frustration on him. Craig lets her rant and rave until she grabs him and kisses him passionately!
At Metro, Rafael introduced himself to Scott Reeves and told him that his sister was Celia. Scott tells Rafael that he'll listen to the demo. Aaron comes up and starts to chew Rafael out but Alison stops him. Alison asks Aaron how he would feel if he was responsible for Luke and had to feed, cloth and shelter him. Aaron finally tells Rafael to go look for Celia. Celia, Casey and Will come in and Rafael starts asking her where she has been. Casey defends her and takes the blame for everything. Scott Reeves comes out and tells Celia that he likes her voice and will pass her demo tape along. Rafael tells Celia that she should stop dreaming about being a singer and, as Celia argues with him, leads her out the door.
Jennifer wakes up horrified after realizing she slept with Craig out of complete anger and frustration with the rest of her life.
Feeling totally guilty, she tries to lay all the responsibility at Craig's feet, but he refuses to take all the blame and assures her it was a one-time thing. Meanwhile, Katie spots an agitated Mike at the Lakeview, claiming Jennifer didn't come home last night. Katie acts as a friend and tells Mike she thinks everything will work out. Across the lounge, Henry, who is now secretly staying at the Lakeview, watches in disguise as Mike has the loving and tender moment he knows he could never have with Katie. Mike and Katie talk about the kiss they almost shared and Mike confides in Katie about how Jennifer turned down his marriage proposal. Katie is comforting and innocently suggests Mike question Craig about Jennifer's whereabouts. Later, when Mike shows up at Craig's, Jennifer hides in the bathroom while Craig plays a guilt trip on Mike for not attending the Street Jeans party. Mike goes and Jennifer is even more embarrassed at her behavior. She splits, half dressed and disheveled as she unknowingly crosses paths with a disguised Henry, who puts two and two together. He marches to Craig's door and when Craig answers, Henry socks him one. Later, a guilty Jennifer arrives in the lounge and comes face-to-face with Mike and Katie.
Having retrieved the partially burned gloves from the alley, Luke tries to finish the job by burning them again but is caught by Lucinda. Luke lies and says he was burning a school paper but Lucinda doesn't buy it. Meanwhile, Lily tells Carly she wants to expose Julia's illegal El Paso past to the authorities in order to taint Holden's perception of her. Against Carly's better judgment, Lily goes through with it and calls the El Paso police. Just then, Lucinda arrives to tell Lily that she caught Luke skipping school and burning something in her fireplace. Meanwhile, at the police station, Tom tells Jack that they need physical evidence in order to prosecute Keith. Keith demands his release and tells Jack and Holden to look to the real culprits, their wives. Later, a cop shows up at the police station with Luke, claming he had been lingering around Julia's apartment. Holden tries to talk to Luke about skipping school and hanging around Julia's, but Luke gets defensive and takes off. Just then, another cop appears with news of a print found on Julia's watch band and Jack and Holden set off, hoping the print will lead them to the killer. Meanwhile, Luke returns home and is forced to face Lucinda. He secretly lets Lily know that this inquisition is about the gloves and Lily covers for him. Later, after Lucinda leaves, Luke tells a nervous Lily and Carly that the cops found a print. Meanwhile, Jack gets the results from the print and it shows that the print doesn't belong to Keith. While Keith demands his release, a concerned Holden starts to suspect Luke may have more to do with Julia's death than he's letting on.