Lucinda bumped into Lily in the Lakeview and shocked her daughter by telling her she and new husband Brian were moving there while Lucinda's home was being redecorated. Lily cautioned her mother to take it easy, since Lucinda was still recovering from her surgery. Lily thought it was ridiculous for her mother to live in a hotel when they could stay comfortably with Lily and Holden and their family, especially with Christmas approaching. She said the children would love it, but she sensed a hesitation in Brian to her offer, especially after she mentioned that Luke would be close by at the farm. After some more persuasion from Lily, Brian agreed that living there would be a great way for him to get to know Lily's family better.
Luke sneaked a beer from the refrigerator at the farm, but soon poured it down the sink after experiencing severe stomach cramps. He went to his folks' house, and Holden commented that Luke looked unwell. Luke asked if he could move back home for a while, and Holden told him he was always welcome. Holden realized Luke needed some time to figure out his damaged relationship with Noah, and Luke left to get his belongings.
Dusty questioned Emily about the false lead to Johnny in Norway. He was also disturbed that Josie had apparently disappeared. Emily warned him that she had always been suspicious of the girl and her motives. Dusty also puzzled over Josie's leaving her sketchbook behind; nothing added up to him. Suddenly Emily realized that Josie had really hurt Dusty, and she said she hoped something good would come out of the nasty trick Josie had played on him. She assured Dusty that he could move on and concentrate on the future, preferably with her. She kissed him, and Dusty reminded her they would be crazy to start up their relationship again; he said they had no future as long as Josie was still in the picture. Emily became angry because Dusty treated her as a disposable lover. She yelled that Josie had been a fake and had set him up-and was paid to do it. Dusty immediately jumped on that, and Emily tried to make him believe she was only guessing. Dusty threw her on the bed and demanded to know everything. He hurt her, and Emily began to cry. She was too angry to help him, and suddenly Dusty realized it was Paul who had hired Josie. Emily had no details, but she told Dusty to forget it. He stormed out, vowing to teach Paul never to mess with him again.
At Fairwinds, Paul called Meg downstairs and surprised her with a huge Christmas tree, which he had chopped down himself. He wanted to decorate the whole house and give his wife the merriest Christmas ever. Paul used his axe to trim off some branches, and he anchored the tree. Meg worried that they didn't have enough ornaments for a tree that large, but they decided they could make some old-fashioned ones. Paul then presented Meg with three beautiful Christmas stockings with their names and the baby's. Meg told Paul how proud she was of him, and they began stringing popcorn for the tree.
Luke returned to his parents' house with some of his things, including a basketball. Holden told him to get settled and then they would shoot some hoops. Lily came home and told Holden that she had invited the newlyweds to stay with them for the holidays, and they would be moving in immediately. Holden then relayed the news that Luke had moved home, as well. Lucinda and Brian arrived, which stunned Luke. He considered leaving, but Lily got him to agree to stay. Luke went outside for some air, and Lucinda followed. His grandmother wanted to know why Luke continued to have a problem with Brian. She assumed that Luke was still upset about foundation business, and she asked him to put his differences aside. Luke promised Lucinda he would try, as inside the house, Lily encouraged Brian to take Luke under his wing more at the foundation. He assured her that he could win over the boy.
While she was stringing popcorn, Meg fantasized about their next Christmas with a year-old little girl on her lap. Paul played Santa and brought in presents for them both. They laughed about their daughter's becoming a ballerina or a doctor. Meg came back to reality and went to find cranberries to string for the tree. As Paul was putting the popcorn string on the tree, he took a call from Emily, warning him that Dusty was on the warpath. He quickly opened his wall safe and removed a revolver, which he hid in a large box of ornaments. Meg returned, and Paul suggested she go shopping for more ornaments for the huge tree. After Meg left, Paul retrieved the gun from the box.
Luke went to Java to talk with Noah. He explained how Brian had come on to him, but Noah found that almost unbelievable. He felt Luke might have misinterpreted the man's actions, but Luke said it was hard to misjudge a kiss on the lips. Noah continued to ask questions, and he mentioned that Luke might have had a skewed perception since he had been drinking heavily. Luke said he could tell that his grandmother's new husband wanted to go to bed with him.
Dusty barged in on Paul and confronted him. They argued, and finally Paul laughed and told Dusty that he had, indeed, hired Josie and had purposely gone after Dusty's soft spots. Dusty said he knew Paul had done everything to keep him away from Meg, but also said he had fostered no interest in Paul's wife; however, because of Paul's recent actions, Dusty swore that taking Meg from Paul sounded like a great idea.
Meg stopped in Old Town to catch her breath, and Emily saw her. She approached and told Meg she was sorry, but she still denied having anything to do with "the situation." Emily left quickly, leaving Meg totally confused as to what Emily was talking about.
Luke went home and was taking swigs of whiskey from a bottle when Brian walked in on him. Brian tried to get the boy to put down the bottle, but Luke said he could not live in the same house as Brian if he was going to keep coming on to him. Brian denied ever doing that and said he might actually be the only person who could help Luke. He declared he was not about to stand by and watch the boy self-destruct. Luke called Brian part of the problem, not the solution, and he got sarcastic and shouted at Brian to never touch him again.
After Dusty's cruel words to him, Paul pulled his gun and aimed it at Dusty. Dusty lunged at Paul, and the two of them struggled for the revolver. Dusty wrestled the gun from him, so Paul grabbed for the axe next to the tree. He went for Dusty who fired the gun directly at Paul as a horrified Meg walked into the room. She ran to a bleeding Paul and screamed at Dusty, "What have you done?"
Meg comforted Paul, who was on the floor, bleeding and in shock, while Dusty called 9-1-1. Dusty tried to explain how he had taken the gun from Paul and had only shot him after Paul came after him with an axe. Paul whispered to his wife, "Donovan's lying," and Meg begged him to stay alive. As Paul passed out, she accused Dusty of killing her husband. The EMTs arrived and took over, as Dusty slipped out the door.
Jack called on Carly, asking to speak with Sage. The girl was next door eating dinner, so Jack elected to wait. Carly was excited because J.J. had secretly applied to a prestigious boarding school out of town and had been not only accepted, but offered a partial scholarship. Carly told Jack that all they had to come up with was the final $10,000, and their son would be headed to East Lake Academy for the rest of the school year. Jack was proud of J.J., but he said he did not have the money. Carly thought they could send half right away and the rest in the spring, but Jack was still reluctant to let the boy be away for the rest of the year. Besides, he argued, J.J. was not exactly the "boarding school type." Carly was upset that Jack was not as enthusiastic as she was about the school and the chance to take advantage of what he had earned. Jack reluctantly wrote out a check for $5,000 and then announced that he was about tapped out in the money department. Carly was delighted, and Sage came home. Jack asked her to be a flower girl in his wedding to Janet, and the girl accepted as long as Carly was all right with it. Carly agreed, so Jack left. Carly and Sage decided they were in the mood for some gooey dessert, so they left for Al's Diner.
Liberty and Janet went shopping for a wedding dress at Fashions. The sales clerk brought out a matronly dress with a jacket, which obviously was not what Janet had in mind. Liberty spied a lovely traditional white wedding gown and commented that it looked just like the one in Janet's "Dream Wedding" book. She convinced her mother to at least try it on, and Janet immediately fell in love with it. She wondered, however, if she was not a bit old for the white wedding gown bit, but Liberty reminded her it was her first wedding, so she was entitled. Janet went to change, and when Jack walked in, Liberty told him they had found THE perfect dress and she hoped her mother could have it. When Janet appeared, Jack and Liberty urged her to let Jack buy the gown for her, and with a bit more persuasion, Janet agreed. As Jack went to write a check for the dress, he read the price as $500, but the sales clerk corrected him and pointed out the tag actually said $5000. Janet came up behind Jack and threw her arms around his neck and told him he had made her the happiest bride in the world.
Dusty went to Emily's office and demanded to know where Josie was. He also told Emily he had shot Paul after Paul had come after him with an axe. Emily claimed not to know where Josie was, as she had only heard that the girl had driven away somewhere in a car. Dusty left, and Emily took off, as well.
At the hospital, Paul regained consciousness, and Meg went with a doctor to sign release forms for surgery. Emily slipped into Paul's room and called his name. She also said she had talked to Dusty, and Paul muttered that she had to back him up. Meg came in and threw out Emily as the orderlies arrived to take the patient to surgery. Meg found Emily still in the hall and asked how she had known Paul was there. Emily said Dusty had come to her office and told her. Meg got upset, and Emily tried to settle her down for the sake of the baby. Meg demanded to know why Paul was almost killed when he had everything to live for. Emily explained that Dusty had found out Josie was a fraud and could not handle it. Meg asked if Paul had anything to do with it, but Emily lied and said Paul was just the scapegoat. She said Dusty was out of his mind, and Paul was not involved with Josie. The doctor came for Meg with good news: Paul was out of surgery and recovering. Meg got to see him, and Paul swore on his unborn baby that he would never do anything that stupid again.
At Al's, Janet, Liberty, and Jack came in and found Carly and Sage eating desserts. Janet thanked Sage for agreeing to be in the wedding, and Carly offered to make the girls' dresses. Janet said she had just found a fabulous dress for herself at Fashions, and Liberty had her eye on one as maid of honor, as well. She suggested Sage look there, so Janet, Sage, and Liberty took off for Fashions, while Jack sat down with Carly. He asked her to hold J.J.'s tuition check for a while, or else it would bounce. He explained he had written a second check for that amount to pay for Janet's dream dress and could not cover both of them at the same time. Carly was irate and demanded that the kids come first, but Jack asked for only a week's delay. Carly furiously told him the check had to be overnighted immediately or their son would lose his place at the school. They argued loudly, and when Janet returned, she realized something was wrong. Jack claimed they were just discussing the children's schedules, and he left to go see Sage in the flower girl's dress. Janet sat down and confronted Carly, who admitted she and Jack had been arguing about Janet and how selfish she was. She asked Janet if she thought she was marrying Bill Gates, and then told her that Jack had taken their son's tuition money to buy Janet a dress she would wear only once. Janet was horrified and explained she had not asked Jack to buy the dress, nor had she even taken a glance at the price tag. She told Carly to get out of her life.
Dusty went to the desk clerk at the Lakeview to see if Josie had left a forwarding address. When he got no information there, he called Josie's cell phone and was surprised when she answered. She told him she was just leaving Oakdale on her way back to Ohio, and she apologized and told him it would be too hard for her to see him again. Dusty told her she owed him a face-to-face explanation for her part in Paul's scheme, and he said he would wait for her at Yo's. Josie arrived shortly and joined him. She said she wanted to tell him her real name was Josephine Anderson, and she had never heard of Dusty or Jennifer until Paul found her and fed her information. She said she had student loans and desperately needed the money he offered. She also told him she was supposed to accompany Dusty to Norway, but she bailed at that point and returned the money to Paul. She confessed she had fallen in love with Dusty and that it was the real Josie who had made love to him. She knew Dusty would despise her for taking Paul's money and asked if there was any chance for the two of them to start over. Dusty said it was too late, and then informed the girl that he had shot Paul, who might die. Josie offered to go to the police on Dusty's behalf and prove what Paul had done to him, but Dusty declined her offer. He said he did not want her doing time for her actions and told her to go back to Ohio. Josie kissed him, but Dusty told her goodbye. As Josie was leaving Yo's, an Oakdale policeman arrived.
At Fashions, Sage and Liberty showed Jack the dress for Sage, and he agreed to buy it; however, he talked quietly with the clerk and asked her to hold the dress for another week, since he had just spent a great deal of money in the store. She agreed, and Jack walked back to the diner where he observed a shouting match between Janet and Carly. Janet immediately asked Jack why he had spent his son's tuition money on her dress, and she also inquired about the new school for J.J. Carly shouted at Janet to mind her own business, as Jack told Carly she had no say in his wedding plans and he wanted the chance to make Janet's wedding dreams come true. Carly left to fetch Sage from Fashions, and the two of them went home. Sage was filled with excitement and joy about the wedding, and she told her mother she was excited to have a larger family, which included a big sister who had promised to teach her to Rollerblade. She was also thrilled about the awesome dress Jack had promised her for the ceremony. Carly was gloomy that Sage was so enthusiastic about the impending marriage.
Kim was out of town, so Brad and Katie went to WOAK to tape a segment in advance, since they were sure Brad would be cleared of all charges as soon as Dani located Spencer McKay in Chicago. They wondered why it was taking so long to hear from Dani, however. The segment dealt with men's responses to scents from different perfumes, so Katie blindfolded Brad and sprayed on one of her favorites. Brad immediately pronounced that it stank. Katie yelled, "Cut!" and told Brad that she wore that fragrance all the time, but Brad said it still smelled like rotten garbage. Just then Katie got a whiff of a foul odor, too. Brad asked a co-worker about the smell, and she revealed it was coming from Brad's locker. They all approached the locker, and Brad said the stench was so bad that something must have crawled in there and died. He produced the locker key and opened the door, and out fell a blonde-haired corpse, wrapped in sheets. A security guard immediately called the police as Brad pulled the wraps off the face of the body. It was ghastly, but he was sure it was Spencer.
Dani arrived at the Oakdale police station and Margo greeted her and wanted to know if she had located Spencer in Chicago. Dani said she had interviewed the deliveryman who had pointed out Spencer's apartment to Brad and Katie, but he denied seeing the girl recently. Dani felt the Spencer that the Snyders saw was a figment of their imaginations. Margo called Katie, but her sister did not pick up.
Lucinda told Lily she had her first post-op appointment that morning and asked her daughter to accompany her. Brian appeared ready to take Lucinda to the hospital, but she gave him every chance to back out. Brian could not be dissuaded, however, so the three of them left to see the doctor.
Tom was leaving for work as Casey was working only on breakfast. Tom said he and Margo had come to a decision the night before, and they were giving Casey two weeks to find gainful employment or he could find another place to live. They verbally sparred, and Casey complained that no one would hire an ex-con who had been expelled from school. Tom said a little manual labor would not hurt Casey and that might be the only way he and Margo could force him to become a responsible adult.
Alison was sitting on a bench in Old Town reading some paperwork when she noticed Luke stumbling by. She called to him and saw how very unsteady he was on his feet. After he nearly passed out, Luke agreed to sit down, but was sarcastic with his friend. Alison asked him if was being such a jerk because he was drunk and then scolded him until Luke told her she sounded like Noah and, even worse, new granddaddy Brian. She talked to him seriously and promised not to tell his parents about his condition if he allowed her to take him to a doctor to be checked out. Luke agreed, but said he had to wash up first. While he was gone, Alison called Casey and asked him to meet them at Memorial, and he agreed. At the hospital, Alison got an intern friend to check Luke's vitals so they would at least know if he needed further help. When they got settled in an exam room, Casey decided to get something from the cafeteria and ran straight into Lily in the hall. He lied and told her he was there looking for a job, but he acted flaky. He went back and warned Luke that his family was just across the hall.
Margo got word from the dispatcher that she should go immediately to WOAK, so she and Dani left. They walked into the horrific smell at the TV station and saw the body on the floor. Margo was unhappy that Brad had touched the body, but he argued that they needed to know who it was. He also asked Dani about her questioning of the deliveryman in Chicago, but she told him the man claimed he had not seen Spencer in months. Margo hauled Brad off to the police station, with Katie in tow. When she was alone with the body, Dani called someone to tell him everything had gone according to plan, and he owed her for it, big time. At the police station, Katie protested Brad's arrest because she claimed she had seen Spencer alive not more than 24 hours earlier. Margo was sure her sister had imagined seeing the girl because she wanted so badly to believe it. Dani brought in the forensics report, which verified that the body was that of Spencer McKay.
After running into Casey, Lily went back to her mother's exam room and mentioned she had been talking to Casey and suspected he might have a girl in the room across the hall. Brian read more into the situation than Lily, however, when he learned Casey was a good friend of Luke's. The doctor came in and Lucinda asked Brian to leave her for a private talk about her medical options with her physician. Brian excused himself, but Lily followed him out and apologized for her mother's abruptness. Brian understood, and Lily appreciated his attitude. Lily went back in with Lucinda, and Brian spotted Casey, Luke, and Alison sneaking out of the other room. Brian noticed that Luke looked unwell and was experiencing another dizzy spell. He offered to step in and make sure Luke was examined, so Casey and Alison backed off for Luke's own good, rationalizing that a family member was in charge. Brian and Luke went into the room where the intern suggested Luke get a blood test to determine whether his symptoms were alcohol-related or a sign of kidney damage. Brian promised he would oversee that, but Luke tried to leave. He was rude and sarcastic and referred to Brian's earlier kiss. Brian finally gave Luke the key to his vacant room in the Lakeview and made the boy promise to go there and sleep off the effects of the alcohol. Brian left, and eventually Luke did go to the hotel.
Margo and Dani interrogated Brad, who was represented by Tom. Dani produced dental records, which further authenticated the body as that of Spencer McKay. She also reminded Brad he still had a key to his locker where they body was found. Tom brought up that there was still no evidence that pointed to Brad's placing the body there, but Margo placed him under arrest anyway. Katie protested loudly, and Brad stopped Margo from reciting his rights by asking for a private conference with his wife. Margo had an inkling that the two of them were not being completely truthful with her as Katie asked for more time to prove Brad's innocence. Margo granted her only half an hour, but Brad was to stay in custody. When Brad and Katie were alone, Brad urged her to tell Margo about her mysterious email correspondent, but Katie had another idea. Brad told her to be careful, and she left the station as Dani watched.
Casey and Alison went to Java, and Casey accused her of being self-righteous when she had said she was glad Luke had a family member aware of his situation. That irritated Alison, so Casey apologized and told her he was not himself because of the job ultimatum issued by his father. Alison then produced the papers she had been reading on the bench and explained they were her final divorce papers from Aaron. They agreed they were both candidates for the Most Pathetic Life Sweepstakes. Alison complained that every one of her relationships had ended in a blood bath, and additionally warned Casey to stop touching and flirting with her. Casey denied that, but they did agree how much they valued each other's friendship.
Tom asked Brad what Katie was not telling the police, but all Brad would say was that someone was manipulating the situation and setting him up. Tom asked who that might be, but Brad had no idea. Tom chatted with Dani, and asked her exactly how hard she had looked for Spencer in Chicago. She replied, "Damn hard."
Back at Lily's, Brian and Lucinda talked, and she apologized for snapping at him in the hospital. She also offered him a chance to back out of the marriage altogether, but Brian realized how tired she was and suggested that she rest while he went back to his hotel for some more of his belongings. Lucinda was gloomy about the prospects of her marriage, but Lily told her mother she felt Brian truly loved her.
At the Lakeview, Luke rested and then checked out Brian's room. He found an envelope from a Carolyn Wheatley, and after a bit of struggle with his conscience, opened and read the note. It was a thank you for an alimony check, so Luke assumed Brian had been married before. He heard someone approaching, so he dived for the bed and feigned sleep. Brian came in and offered to take Luke to the hospital if he was still feeling poorly, but Luke left hastily with the note.
Margo informed Brad she had ordered a search warrant for his WOAK locker and his home. She also chewed him out for further complicating her sister's life, although Brad denied that charge, too.
Katie went back to WOAK to use her computer. She emailed her mystery person and begged him to stop tormenting them. She said she was willing to do anything he wanted. As Katie waited hopefully for a reply, another employee came to her and advised her that a car was waiting for her downstairs. Katie said she had not ordered a car, but learned the driver had said he would not leave without her. Katie went outside and opened the back door of the limo and saw her brother Craig sitting there, saying, "It's good to see you, baby sister."
Jack needed money, so he called Holden and asked him to come to the farm and loan him $5000 to cover the checks he had recently written. His cousin agreed and gave Jack a check immediately.
At the Lakeview, Janet inquired about a reception venue for her wedding on New Year's Eve. Lisa had recently had a cancellation for a party in the ballroom, and she was willing to rent it to Janet for the "bargain price" of $20,000! Lisa explained that included a meal, an open bar, and all the wait staff. Janet was flabbergasted by the cost and did not know how to respond. She allowed Lisa to convince her to go for the deal and put down a healthy deposit.
Carly received a call from the East Lake Academy notifying her that Jack's tuition check for J.J. had bounced. She dashed to the farm and confronted her ex-husband. Jack reminded her that he had warned her not to send the check yet, but Carly was under the impression that Jack was going to make Janet return her wedding dress to Fashions. Jack told her he had already borrowed the money from Holden, so the check was valid, and that infuriated Carly even more. She went off on Janet, calling "that woman" a disaster for her family. Jack argued with her as Janet made an entrance. Carly stormed out, and Jack refused to discuss her with his fiancée.
Janet told him she had a meeting with Lisa Grimaldi, who had offered them a great last-minute deal on the ballroom at the Lakeview for their reception. She confided that she thought it would be better to have the event at a venue where Jack had not already had a wedding, therefore she had nixed the farm. Jack had to tell her he had been married once at the Lakeview, as well, also to Carly. Jack wanted Janet to have her dream wedding, but when he heard the price of $20,000, he completely lost it. Janet had cleaned out her checking account to come up with the deposit, but she hoped Lisa might return it. The idea of being married at the farm was sounding better and better to Jack, but then Janet mentioned her large Italian family from whom she was estranged because of her out-of-wedlock pregnancy with Liberty. Jack wanted Janet to have whatever she wanted, including all her relatives, and he promised to borrow money from the bank.
At the police station, Margo handed Brad a warrant for his arrest, but he asked for still more time for Katie to return. Margo declined that request, and Brad continued to protest that Spencer was still alive. He finally told Margo about the mysterious emails Katie had received and asked Dani to verify that Katie had told her about the messages. Dani said Katie had mentioned them, but after Dani had checked them out, she found they were all dead ends. Margo was not thoroughly convinced, however, so she sent Dani to bring Katie's computer, which the police had impounded. Dani did as Margo asked, but when she returned she said the files had been corrupted and would no longer open. Brad immediately yelled that the mystery manipulator had engineered that, as well. Margo finally recited Brad's rights and proceeded with his arrest.
Katie was shocked to see Craig in the back seat of a limo outside WOAK. She reminded him he was still wanted by the police for the attempted bombing murder of Paul Ryan, and Craig told her to keep his presence in Oakdale to herself. He said he had come home to help her because he had heard she and Brad were in a spot of trouble. Katie wanted to know how her brother had learned about their trouble when the realization hit her that Craig was most likely responsible for what was happening to her and Brad. Craig, of course, denied that and offered to help. Katie accused him of murdering Spencer, but Craig said the dead girl was not really Spencer and was dead before he came into possession of her corpse.
He accused his sister of being overly dramatic, but Katie threatened to tell Margo the truth. If that happened, Craig promised, he would simply disappear again. He also reminded her they had a bargain as Katie had promised to do whatever her mystery correspondent wanted. Craig asked Katie to be his alibi and to swear she was with him at the time Paul Ryan had his unfortunate accident. Katie called him sick and delusional, and said no one would believe her. Craig thought Margo would, and in return, he promised to produce the "undead" Spencer McKay. When Katie again refused, Craig said Brad would be spending lots of time in police custody, and Katie realized she had no choice but to help her weasel of a brother. She agreed to his requests, and Craig immediately called Dani Andropoulos.
Carly went to the Lakeview for lunch, still fuming over Jack's mishandling of money. Lisa was acting as hostess and asked if Sage was going to be in the wedding. She then said that the wedding was going to be a most glorious event on New Year's Eve in her ballroom. Carly did not believe her until Lisa said that Janet had signed the contract only an hour earlier. When Carly tried to find out what the rental cost was, Lisa replied that she was giving Jack and Janet "a special deal."
Dani took Craig's call telling her they were "good to go," so she told Margo she had been reviewing the dead girl's dental records and thought there was room for interpretation. She also pointed out that Katie and Brad's story about how bad things happened whenever they got close to the missing girl was beginning to have merit. She volunteered that she had sent the dental records to another lab and was waiting for the results. She also asked permission to go back to Chicago to see if Spencer had turned up. She cleverly stressed that since Katie was part of Margo's family, they should leave no trail unexplored. Margo agreed and thanked Dani.
Carly called Holden and asked him to meet her if that would not cause a commotion at home. He agreed and came to the Lakeview, where Carly accused him of enabling Janet to overspend Jack's money. Holden did not understand why Carly had such a problem with Jack's business. Carly resented that Jack was trying too hard and snatching back all the memories the two of them had built. Carly left without getting what she wanted from Holden.
Margo received a file from a messenger and was reading it when Dani called from Chicago. Margo told Dani the report was from the second lab, and they had found it was inconclusive as to whether the body was that of Spencer. Dani said she had just seen the girl walking into her apartment, and Margo promised to be there as soon as she could.
Craig promised Katie that the wheels were turning, and he would be in touch with her. Katie left to go back to Brad. When he saw her, he told her he was about to be booked for murder, and confessed he had told Margo about the secret email messages. Katie was relieved that her sister had not believed Brad, and told him she had a feeling things were about to get much better. An officer took Brad away to book him, and Katie called Craig, who promised her husband would be out of jail soon.
Margo made a fast trip to Chicago and entered Spencer's apartment with her gun drawn. She found no one, but they found her; Dani came in at the point of Spencer's gun. Spencer told Margo to drop her weapon or Dani would end up in the morgue just as she had. Margo threw down her gun, and Spencer handcuffed the two women together, taunting them about how easy they were to fool. She admitted that she was the secret instant messenger on Katie's computer, and had manipulated Henry, as well. Margo asked why she had gone to such elaborate measures, and Spencer said that was her own business. She did, however, call Katie jealous and vindictive, and was hurt that Brad had rejected her advances. Dani asked about the body in Brad's locker, and Spencer admitted she had stolen it from the Chicago morgue. Spencer said her farewells and walked out, and Dani apologized to Margo for letting the girl get the drop on her.
At the farm, a priest named Father Bernard arrived looking for Jack. He found him and declared he was there to give him instruction in the Catholic faith so that he and Janet could be married in the church. Janet arrived, but Jack was confused; he thought the wedding was to be either at the farm or in the Lakeview. Janet told him those were the possible venues for the reception only. The actual wedding would be in a Catholic church. Jack agreed to talk to the priest, and Janet listened from another room as Jack sang her praises and professed how much he loved her. The only time Janet worried was when Jack discussed his multiple wedding and divorces. All went well after that, and Janet praised Jack for being so flexible.
Margo returned to the Oakdale police station and told Katie she had found Spencer. She asked Katie's forgiveness for not believing her, and ordered Brad's release. She explained how Spencer had orchestrated everything, and Katie said she was thankful Margo had figured it all out. Actually, Margo said, it was Dani who had made all the important discoveries, so she had given her the rest of the day off. Katie and Brad went home and made love.
Later, Dani arrived at a room in the Lakeview with a bottle of champagne. There, she and Craig shared the bubbly and a long kiss.
Brad told Katie that he still had a lot of unanswered questions about Spencer McKay. Katie tried to convince him to drop the subject by seducing him, which was working until Margo showed up. Margo told Brad she wanted to apologize for not believing that he was innocent of Spencer's murder. She told them she had been hard on Brad so that it wouldn't appear she was showing favoritism or nepotism. Also, because Katie was her sister, she didn't want to see Katie get hurt. Brad accepted Margo's apology, and she left.
At the Lakeview, Craig teased Dani about her interest in Chris Hughes. Dani said she'd flirted with Chris to make everyone in Oakdale think she was "available." She told Craig no one had ever suspected her of working with him, and he congratulated her on a job well done then kissed her. However, when Dani said she was glad they could start to be seen together in public, Craig told her he thought people would become suspicious if Dani seemed to suddenly develop a relationship with him. Craig thought if anyone dug around in Dani's past, they might discover her connection to Spencer.
Craig called Katie on her cell phone and told her it was time they got their stories straight. Craig then went to the police station, where he surprised Margo. Margo asked Craig about the previous attempt on Paul's life, when Paul's car had been bombed. Craig said he had nothing to do with that, but Margo opened the case file and read back Craig's words about the incident, when he had essentially confessed to the bombing. Craig said that hadn't been a true confession; it had been his wounded pride talking. Craig said Meg and Paul had made him look like a fool, and since he was leaving Oakdale, anyway, to look for Johnny, he decided to go out in a blaze of glory by making it sound as though he had been responsible for the attempt on Paul's life. Margo didn't buy it, but Craig told her he had an alibi. When Margo asked who would stand up for him, he said Katie.
Margo called Katie and asked her to go to the police station. Katie and Brad went to the station, and Margo took them into the interrogation room, after warning them to brace themselves. When they saw Craig, they both reacted with surprise. Craig greeted his baby sister, then referred to Brad as "husband number four." Brad corrected him, saying, "Five," and Craig said that was a lucky number and maybe this one would work out.
Katie told Craig she didn't want to be part of his family reunion, but Margo said Katie was there as part of the official investigation into the attempted murder of Paul Ryan. Brad said the newspaper had reported that Dusty had shot Paul. Margo said she was referring to a different murder attempt. Margo told Katie that Craig was claiming to have been with Katie when the car bombing occurred.
Katie said it was true, that the day Craig had left town, she had been with him during a break in shooting at WOAK. Katie said Craig had called and asked to meet with her, and she had reluctantly agreed, primarily because Bonnie had shown up at WOAK, and Katie hadn't wanted to watch Bonnie flirt with Brad. Katie said that when she met with Craig, he had told her he was thinking about leaving town, to follow up a lead he'd gotten on Johnny, and if he found Johnny, he was never going to return to Oakdale. Katie claimed she had tried to convince Craig that he should leave Lucy and Johnny alone. Katie said Craig's response had been that Katie could barely take care of herself or hold onto a husband, so Katie couldn't know anything about the strong bond between a parent and child.
Margo said that was exactly the story Craig had told her, and she didn't believe it. Margo wondered why Katie hadn't told her the story the day of the bombing, when she knew their brother was the prime suspect. Katie said she'd been mad at Craig and had believed him when he'd said he wasn't going to return to Oakdale, so she hadn't jumped to his defense. Margo said she still wasn't buying the story. Katie reminded Margo that she had just apologized to her and Brad for not having believed them about Spencer's murder, yet Margo wouldn't believe Katie's story about Craig. Katie said she had no reason to lie. Margo reluctantly told Katie she would take her at her word.
Margo told Craig he was free to go, although she was sure he would turn up again sometime soon. She told him she would figure out how he had gotten to Katie. Brad and Katie left, but before Craig walked out, Dani arrived, telling Margo she was there to pick up her paycheck. When Dani saw Craig, she pretended to be pleasantly surprised by his appearance in Oakdale. Margo wondered why Dani would care. Dani reminded Margo that Craig had been like a second father to her while she was growing up.
Meg went to the hospital and found Paul getting dressed. Paul asked whether Dusty had been arrested for attempting to murder Paul, but Meg said the police hadn't found Dusty yet. Paul insisted he wanted to go home, and Meg said she would check with Paul's doctors to find out if it was okay for him to leave.
Derek and Bonnie went to Metro, which wasn't open yet. Bonnie let them in, and Derek told her he wanted to get back on track with her and start over again, but he wanted to do it right. He kissed her. Bonnie heard a noise, and Derek took out a gun. He assured Bonnie he had a license for the gun, and then he went to investigate the noise. He found Dusty, who still had a key from the days when he had run the nightclub. Bonnie, knowing Dusty was wanted for the attempted murder of Paul Ryan, wanted to call the police, but Derek stopped her. Derek told Bonnie he was working for Dusty.
Dusty tried to explain to Bonnie what had happened between him and Paul. Bonnie said that if Dusty had truly acted in self-defense, as he claimed, she would represent him, but she wanted him to turn himself in to the police. Dusty said he would, as soon as Derek did him a favor. Dusty wanted Derek to try to convince Meg to meet with Dusty.
Meg took Paul back to Fairwinds and got him to go upstairs to rest. Derek arrived and asked how Paul was doing. Meg thanked him for his concern. Derek then told her he was there was to ask her to meet with Dusty. Meg said she wouldn't do that, because Dusty had tried to kill Paul. Derek said Dusty claimed it had been self-defense, but Meg said it wasn't.
Derek told Meg she should meet with Dusty and see for herself whether there was any truth to his claims. He took Meg to Metro to talk to Dusty. Dusty told Meg he hadn't meant to shoot Paul, but Paul had tried to attack him with an axe, and he had fired in self-defense. Meg said she didn't believe Dusty, but Dusty said Paul had cracked. Meg told Dusty that maybe he was the one who had cracked, after finding out that Josie was tricking him. Dusty told Meg that Paul had put Josie up to it and had given Josie information to help her fool Dusty.
Meg told Dusty that Paul wasn't responsible for any of that. Dusty asked how she knew that, and Meg said because Paul had told her he wasn't responsible, and she believed him. Dusty told her to look at him and then tell him she still believed Paul instead of him.
Paul had a dream in which James appeared to him and told Paul he was impressed with the way he'd managed to get rid of Dusty. Paul said it hadn't all gone according to plan, because Josie wasn't supposed to have confessed everything to Dusty, and Paul had not intended to get shot, but the end result was what he had wanted. James said maybe Paul was his son, after all. Paul smiled in almost childish delight at having gained his father's approval.
Meg returned home and found Paul downstairs, waiting for her. He asked her to turn off the lights. When she did, he turned on the lights on the Christmas tree, which had been decorated while Meg was gone. Paul took Eliza's stocking and told Meg he wanted to start a tradition of hanging their little girl's stocking together. Meg told Paul how happy she was. Paul said he was tired, so he headed upstairs, with Meg saying she would be right up. After Paul left the room, Meg called the police to tell them that Dusty was hiding at Metro.
Bonnie told Dusty it was time to turn himself in, but Dusty said he needed a little more time. Derek offered to help get Dusty out of the country, but Dusty said he didn't intend to run. Margo walked in with a police officer. She asked Bonnie if she had been harboring a fugitive, but Dusty told Margo that Bonnie was his lawyer, and Bonnie had been telling him to turn himself in. Margo led Dusty away, but Bonnie remained behind to talk to Derek. Bonnie wondered why Derek was repeating his old pattern of making bad decisions that could get him in trouble. Derek said Dusty was his friend. Bonnie said helping a friend by doing something illegal would land Derek in jail, and with Derek's record, it wouldn't be easy to get him out again. Bonnie told Derek she didn't want to get involved with someone she might lose.
Brad and Katie went home, where Brad asked Katie why she'd never told him about her encounter with Craig the day of the bombing. Katie said it had happened when she and Brad had been having problems. Katie said when she and Brad had gotten back together, the Craig encounter wasn't something she thought was important enough to bring up. Brad said he hated to see Katie so upset, but she said that was what Craig did to her. Brad said he would go talk to Craig to get him to leave Katie alone, but Katie became even more upset and made him promise not to do that. Katie said they should forget about Craig and focus on their future together.
At the police station, Craig told Dani she shouldn't have risked going to the station when she knew he would be there, but Dani said no one had suspected anything. Craig told Dani he needed to know he could count on her to follow through when he told her to do something. Dani said she understood. At that moment, Margo arrived, with Dusty in tow. Dusty was stunned to see Craig and asked what he was doing there. Craig said it was ironic, because he had just been cleared of trying to murder Paul, whereas Dusty was bring brought in on the same charge.