Lucas comforts his worried mother and urges her to go to Victor and tell her side of the story before Philip does. Meanwhile, Victor and Philip are arguing until Victor angrily slaps his son and reveals that he knows that he's been fooling around with Kate. Philip insists that he loves Kate and adds that she needs a "real" man. He then assures Victor that Kate has been faithful to Victor but Victor calls his soon a fool with an inflated ego. When Philip tells his father that he needs a nurse not a wife, Victor fires him and threatens to kill him if he ever touches Kate again. At the video store, Eric stares in disbelief at the cover of the adult video featuring Nicole using the name "Misty Circle." Eric then rents "Locker Room Lolita," unaware that Nancy is there, searching for a video to watch with Chloe. Eric takes the video to a shocked Roman and reminds him that he was right about Nicole. Roman mentions AIDS and while Eric assures his father they were safe, he does promise to get checked out. Nicole is told her test results will be back in a week. Belle convinces Chloe to accept Philip's date offer. Nancy is thrilled to hear about the date but is concerned when she finds out who her date is.
While Philip and Shawn play a game of one-on-one, Jan and Jason make fun of the fact that Philip is stuck taking Chloe to the dance. Philip tries to get out of the arrangement but Shawn won't allow it. They then suggest that Shawn invite Belle to the dance since Philip won't be asking her. Upset, Philip threatens to tell Chloe about their deal if Shawn does go out with Belle. When Nancy fails to get Chloe excited about her date, Craig arrives and convinces her that he's noticed Philip eyeing her and adds that he thinks she's "quite a catch," just like her mother. Nancy then convinces Chloe to allow her to take her shopping for a dress for the dance. Belle talks with Mimi about coming with her group of friends to the dance and learns that she doesn't have the money for a dress. Belle offers to help her put something together at her house but Mimi quickly nixes the idea of coming to her house, lying that her mother is ill. Belle does convince her to agree to go to the dance. Lexie's worried to find Hope back at the hospital. Dr. Bader informs her that the infant is stable now and can go home with her. Meanwhile, Craig hopes to Dr. Bader that Lexie will be a full-time mom now that she has a baby. Victor follows Kate and Nicholas to the Blue Note and is impressed when she insists on being with Victor no matter what his medical condition. Later, though, Victor spots Kate and Nicholas kissing.
Belle's relieved when Mimi uses their secret handshake to assure her that she's never used drugs and never will. Mimi finally confesses that her dad's out of work. Belle offers to buy her a dress and Mimi accepts. When Chloe's frustrated in finding a black dress, Nancy suggests they take a few home for Craig to see. Running into Chloe and her mother, Philip talks about his plans to work this summer and his hopes to be a Broadway producer. While Nancy talks with Shawn and the others, Chloe offers Philip an excuse to back out of their date but he won't bite and announces that he'll pick her up at eight. Nancy accuses Shawn and his friends of having an ulterior motive and warns that she'll make anyone pay for hurting her daughter. She also issues Philip a warning. Victor interrupts Kate and Nicholas and tells Kate she can continue with her affair and he'll see her back at the house. Kate runs off after advising Nicholas that she doesn't love him. Nicole asks Dr. Bader to have her tested for HIV. Eric decides to investigate the production company that made Nicole's porno video. After Nicole punches out Kate, Victor makes Kate an offer. Nicholas hands Lucas a note for Kate, admitting what happened earlier.
Victor announces to Kate that she can live in separate rooms until Philip moves out but they will never be lovers. When she argues with him about this arrangement, he offers to let her lover move in with her. She insists that she has been faithful to him all these years. When Philip interrupts, Victor announces that they've decided to live apart until they are married. Philip threatens to cancel his date with Chloe if Shawn invites Belle but Shawn reminds him what Nancy might do to him. Encouraged by Caroline, Shawn tries to invite Belle but ends up inviting both her and Mimi. Austin convinces Nicole to talk about her tests but she won't reveal her biggest fear. When Rex spots them talking, he finally remembers where he's seen Nicole before. Sami catches a glimpse of Brandon's backside as he showers and finds that she can't get the image out of her mind. The two return in disguise to the strip club where Brandon convinces the owner to hire his lady friend. Questioning the porno producer, Eric learns that "Misty's" father brought her in for the video and that she only made one tape. He offers to buy the out-takes from the session but is told they're locked up.
Stefano taunts John with the idea that, at any time, Hope could remember that they made love on the submarine. He urges him to find and remove the computer chip if it's in Hope's head. Hope worries to Bo about her fear that their baby is rejecting her. When she asks what she might have done as Gina to cause this, Bo puts her off and leaves for work. When John arrives, Hope rushes to his arms and embraces him. Philip boasts to Jan and Jason that as soon as he brings Chloe to the dance, he's dumping her. Mimi digs up a box from the ground and puts something in it to save. Dirty from the digging, Mimi's embarrassed when the kids notice this and make fun of her. Shawn is warned that Chloe's going to get what she deserves at the dance. Belle complains to Marlena that Shawn didn't ask her to the dance. Marlena is rocked when she receives a special letter. A filthy Mimi arrives at Belle's place. Afraid that the kids may make fun of her, Chloe considers calling to cancel her date with Philip until Craig interrupts.