Will receives a pink notice from his biology teacher because he missed the final exam. He lies to Gwen about taking the exam, but she finds the notice.
Meg refuses to move into the new house with Paul because of his responsibility to Emily's baby. Paul leaves and goes to the hospital and announces to Emily that he plans to give up his parental rights to her baby. While Paul is at the hospital, Emma comes to the apartment and insists that Meg move to the farm with Emma. Meg stays behind to finish packing.
Carly discovers a Saint Christopher's medal in Nick's pocket and goes straight to the station to tell Jack that she has found the missing medal. Nick walks in, followed by Mike and Katie, and Nick pulls the medal from his pocket. Nick and Mike both explain that every member of their family was given an identical medal. When everyone blasts Carly for suspecting Nick, Jack is the only one to defend Carly.
When Jack defends Carly, Katie tells him he's falling into his wife's trap. Jack insists to Carly they can't keep finding excuses to get into each other's lives. Carly leaves and then warns Katie she thinks Nick could ruin her and Mike's new marriage. After all, has Katie ever seen Nick with this medal before? Meanwhile, Mike asks Nick if he stole the medal. Mike suspects that Nick thinks Mike is guilty. Lily confides in Lucinda that Luke is gay and is shocked when her mother...isn't. Lucinda says obviously something was bothering Luke, and now at least it's out in the open. Meanwhile, Luke brings Jade her stuff and insists that his life is better now that the truth is out than when he was faking it with her. But Jade keeps pointing out how uncomfortable Lily still is with her baby boy. Later, Luke comes upon his mother and grandmother and realizes Lucinda knows all. Gwen finds a note from Will's teacher about the biology exam he missed, but is stopped from questioning him by Maddie rushing in sobbing that Casey finds her repulsive. At the same time, Casey is going to Tom for help with how to say no to a girl. Gwen sends Maddie off to find a private spot for her and Casey to make out, while she looks for Will to ask about the biology test. He tells her they obviously don't want the same things out of life. Gwen storms off and Will runs into Jade. Later, Lisa informs Maddie that she'll be going out of town. Will Maddie watch their suite for her?
At the farm, Paul wants to see Meg, but Emma won't let him. He leaves. Emma goes inside to talk to Meg. Sensing a lecture, Meg goes outside of air. Paul steps from the side. He tells her he is giving up all rights to the baby because he wants to be with her, and because he wouldn't make a good father. He offers to take her anywhere in the world she wants to go. She promises to think about it.
In Emily's hospital room, Henry tells her about the briefcase. He tells her the police have it and they will trace it back to B.J. Emily promise not to rat Henry out. Henry can't believe how sane Emily is behaving. Hal arrives and reads Emily her rights, and tells her he will return tomorrow to take her into custody. Hal leaves. Emily tells Henry she's keeping the baby. Henry tells her all the reasons it's not a good idea. Emily says Susan will raise the baby because Paul is giving up his rights. She's glad Paul and Meg won't be raising her child. Henry keeps telling Emily how crazy she was before this incident and it might help keep her from jail.
In the park, Jade and Will discuss families. Jade tells him she left home as soon as she could. Will looks as though he feels sorry for Jade. He says good night and heads home. Jade goes to the library. She phones her father and tells him she's not in trouble or in jail and she doesn't need any money. She tells her father, she won't bother him by call again. Jade hangs up. She lies on the floor, using her bag for a pillow and a jacket for a blanket.
At Hal's house, Gwen and Casey talk about her problems with Will. She tells him Will is upset that she and Casey fell asleep. Casey offers to leave before Will comes home. Gwen says no because if Casey and Will ignore each other, things will get awkward. As Casey is leaving, Will arrives. Will tells Casey everything is fine between them. Will walks into the kitchen and goes upstairs without speaking to his wife. Gwen stands by the stairs and tells him nothing happened with Casey. Will comes back downstairs. Gwen wants to know what's troubling her husband, but he isn't sure. She suggests they both drop out of school. He says he wants to finish school and then get an apartment.
Maddie is at Lisa's preparing for a romantic evening with Casey. She fantasizes about him. (Her dream is a silent picture complete with music and subtitles.) She realizes she has no condoms. She leaves to get some.
At the drug store, Maddie isn't sure what kind of condom to get. So she gets A LOT of different kinds, sizes and flavors. While she's checking out Tom walks in. She stands in front of the sales counter to keep Tom from seeing what she's purchasing. She tells him they are bandages for her ankle. She gets her bag and leaves. After Tom receives the prescription for his grandmother, Hal walks in. Tom tells Hal that Emily is in a lot of trouble, and they need to prepare themselves.
Maddie returns back to Lisa's apartment. Casey arrives and she tries to seduce him. He backs away. Maddie wants to know if she's done something wrong. Casey hears his dad (in his head) telling him to tell Maddie the truth about respecting her too much to have sex with her. Casey tries, but leaves without telling Maddie the truth. Maddie is left alone and hurt.
Maddie, freaked out by Casey's rejection, demands to know if Will thinks she's hot. Would he do it with her? Will says he's the wrong person to speak to – his marriage is about to break up over a stupid biology paper. Maddie goes back to the store to return her condoms and runs into Casey. At the library, Will tries to study but is quickly frustrated. That's when Jade shows up and offers him a solution. Meanwhile, Gwen is also freaked out about her fight with Will. Carly advises her to just stay away from Casey if it bothers her husband so much. But Gwen isn't sure if she can give up her job. Dusty is eager to get to Emily's arraignment and Tom has even brought Daniel to say good-bye to his mother, but Emily's new plea of insanity puts everyone's plans on hold. Emily says that being arrested brought her back to earth and she now realizes how sick she was. She begs Hal and Tom to see the goodness in her. Tom doesn't buy it. But when he sees Emily with Daniel, he agrees to a 30-day psychiatric evaluation period. Dusty overhears and explodes! Mike urges Katie to believe as much in Nick's innocence as she does in his. Katie promises to try. But, after both men have left, she finds another St. Christopher's medal. A desperate Katie calls Carly and tells her she might have been right about Nick....
Casey runs into Maddie at the drug store and sees that she was trying to return several opened boxes of condoms. Upset, she leaves, but he follows her to Java, where they have a long talk about their relationship and why it hasn't gone to the next level yet. Casey reiterates all the bad things that happened in his life after he had sex with Gwen --- the loss of his parents' trust, the loss of his best friend, the loss of his son, the loss of his chance to go to the college of his choice, etc. --- and says that's why he's a little gun shy. He tells Maddie that he thinks she's the greatest but he's scared of what might happen if they move too fast, because things are finally starting to get back on track for him. Maddie is happy that Casey has been honest with her about his feelings, but then Casey says he has to rush back to Crash to take care of some business, and she looks less than happy when he leaves.
Jade sees Will at the library and finds out he has a biology term paper due that he has not even begun to work on yet. Jade suggests he can find a paper on the Internet, buy it, modify it somewhat, and turn it in as his own. After some initial objections, Will succumbs to the temptation, and Jade finds a paper for him on ecosystems and prints it out. Gwen arrives, and Will introduced her to Jade and tells her that Jade was helping him with his research. They talk about the fact that Jade needs a place to stay, and Will suggests Gwen's old place above Bert's garage. Jade says she'll check it out. Gwen hugs Will and tells him how proud she is of him for working so hard to graduate.
Katie finds another St. Christopher's medal in a box full of Mike's old things and shows it to Carly. They decide to call local jewelers to find out whether Nick actually took another medal in to have the clasp fixed, like he said he was doing, and they figure out that he took it to a jewelers near the police station. Katie has the jeweler deliver the repaired medal to her house, where Carly recognizes it by a notch on the medal as the same one that she had found in Nick's jacket pocket. They determine that this means the one Katie recently found is actually Mike's, and they assume that means the other medal is Nick's --- meaning that Nick was trying to cover for himself, not for Mike, if he took that medal from the evidence room at the station. Carly wonders why they said the medal had Mike's DNA on it, but Katie wrote down what the report said, and it was that the DNA was "consistent with" Mike's DNA.
Paul meets with Jessica, who gives him the papers he requested to relinquish his paternal rights to Emily's baby, plus his divorce petition. She questions him as to whether he's positive about his feelings and whether he might some day change his mind and want to be involved in the baby's life, which won't be possible after he signs the papers. He assures her this is what he wants.
Paul calls Meg and leaves her a message telling her how much he loves her and explaining about the relinquishment and divorce papers and asking her to go to the Fiji Islands with him. Jack comes in as Meg plays the message, and he tries to warn her away from Paul by comparing the two of them to him and Carly. Meg points out the ways in which they are different, but she says Carly and Paul are also very similar, having been raised by people like Ray Tenney and James Stenbeck instead of by someone like Emma Snyder. She tells Jack that Carly and Paul don't have the grounding the 2 of them have, and that that is what they need, look for, and want from Jack and Meg. She says that's why they care so much for them, and she suggests that Jack won't be happy until he's gone back to Carly. Jack tells her it sounds like someone has decided to go to Fiji.
At the hospital, Emily is moved to the psychiatric observation wing despite Dusty's protests and complaints that Tom and Hal have let her off too easily. Paul shows up with the relinquishment papers and tries to convince Dusty that he had nothing to do with Emily's decision to keep the baby or with her being transferred to the psychiatric ward. Dusty is bitterly angry anyway, and Jennifer tries to calm him down by telling him that if he will just stay focused on her and the baby and their future together, she will put Paul out of her life permanently.
Emily is moved to her new room and finds a sonogram picture of her baby; she cries to the nurse about how hard it will be to give the baby up when she has to go to jail. They leave so that Emily can see the doctor. Paul finds Emily's new hospital room. Although Emily isn't there, Paul sees a file on the table by the bed and picks it up. Inside is the sonogram photograph they've given to Emily. Paul is sitting on the bed, staring at the photo, when Emily comes back in.
Dusty, Jennifer, and JD (John Dustin) are outside on the bridge feeding the ducks, when Dusty takes JD and asks him if he thinks his mom would marry him.