In the beach cave, Cole listens in to Olivia's drunken ramblings about her unhappy marriage to Gregory, and her memories of meeting Armando Deschanel in that same cave. At The Deep, Gregory makes a phone call to ensure that Cole is kept away from Caitlin. Ben and Meg arrive at the nightclub, to maintain appearances of "business as usual", while at the bar, Ricardo accepts a drink from his flirtatious female companion, Gabby. Meanwhile, held hostage in the warehouse, Paula begins to scream for help... Gregory watches Meg and Ben as they discuss Annie's innocence, but is too far away to hear their conversation. Ben is relieved that Meg is willing to keep Annie's secret. When Mark asks Meg if she discovered who was impersonating S.B., she evades a direct answer, just saying that it was "some woman" who had the hots for Ben and who thought Meg was competition. Meg told Mark that she's not going to tell Ben she knows he's S.B., but that she's going to get him some other way. Ricardo offers to walk Gabby home. In the Richards' limo, Caitlin rambles about Cole to Tim, who's driving her home. Back at the cave, Olivia stumbles as she trys to stand up to leave and Cole reaches out to steady her.
When Cole suggests Oliva stop drinking, Oliva suddenly went still, sensing a "presence" in the cave, and wonders out loud why she feels as if she knows Cole. After walking Gabby to her apartment, Ricardo accepts her offer to come in to use the phone to check in with Paula. Ricardo is uneasy when Paula doesn't answer the phone; he leaves her a message on the machine. He begins to wonder if maybe Paula changed her mind about eloping... lounging on the bed, Gabby encourages Ricardo to stay. When a blindfolded Paula hears someone moving around, she tries to talk her kidnapper [Eddie] into let her go, warning him that she's a police officer. Meanwhile, Eddie frantically went through Paula's bag, looking for the notebook he mistakenly thinks that Paula has been keeping on his activities, but it's not there.
Caitlin asks Tim to pull the car over and come sit with her in the back seat of the limo. Caitlin then asks a stunned Tim to make love to her. Meanwhile, in the cave, Olivia asks Cole if they know each other; he says no. Olivia begins to come on to Cole, but he pulls away and offers to take her home instead, but Olivia adamantly refuses to go. Ricardo turns down the Gabby's offer; she refuses to take no for an answer and begins to make overt physical advances. Gabby begins to undress Ricardo, who starts to respond, but then breaks off the embrace. Ricardo leaves to go check up on Paula, but once outside Gabby's door, it's obvious he was very tempted to stay.
Tim refuses to make love to Caitlin, but Caitlin leans in for a kiss. When Tim pulls back, Caitlin sadly wonders why men don't want to make love to her. Cole brought Olivia back to a hotel room. Olivia happily begins to make advances, but Cole told her he's leaving. Olivia wants to hear about the woman who broke Cole's heart. When Olivia reaches for the phone to call room service for more champagne, Cole struggles briefly with her for the phone. They fall back on the bed together, and Cole freezes when he sees the intricate jeweled necklace that Olivia's wearing. Ricardo is further worried when he arrives home to find Paula's still not home. Wrestling Paula down, Eddie puts a tape recorder to her ear. A distorted voice plays back instructions for Paula.
When Cole asks Olivia about her necklace, she told him that it belonged to her first love's family treasure. At The Deep, Gregory congratulates Meg on winning Ben over, implying an intimate relationship between them and bringing up the woman's robe he saw at Ben's place. Caught off guard, Meg quickly excuses herself to place Gregory's order. Ricardo turns up, looking for Ben, frantic to find Paula, but Ben denies seeing her. Ricardo then asks Meg and Mark about Paula; they also deny seeing her, but suggest he ask Paula's partner, Officer Eddie, who has just arrived, looking very tense. Meanwhile, a trussed up Paula begins to work her ropes loose.
Gregory confronts Eddie with an offer: find out who Ben Evan's new female friend is. Eddie taunts Gregory that it may be Olivia, and then implies he doesn't need anymore "assistance" from Gregory. Ricardo confronts Eddie about Paula. Eddie deftly uses their past rivalry over Paula to deflect Ricardo from the right path. When Meg delivers Gregory's drink, she comes up with a convincing story that puts her as the owner of the lingerie at Ben's place. When Ben comes up unexpectedly, Meg gives him a big kiss, for Gregory's benefit. In the hotel room, Cole starts to question Olivia about her husband. Olivia gives Cole food for thought, contrasting Gregory's benevolent public persona with the real life Machiavelli she knows. Olivia confesses that it's so pathetic that she still loves Gregory. Olivia mentions a lover who wanted to run away with her once [Del], and starts to talk about loneliness. Olivia begs Cole to stay for the night, and the two kiss. Back in the limo, Caitlin blames her inexperience for turning off men she offers herself to, and wonders how she'll ever get any sexual experience. Tim told Caitlin not to be ashamed of her virginal state, and to not give up looking for that special someone. Tim continues to work on Caitlin's self-esteem, as Caitlin continues to make physical advances. Tim finally responds, and the two lie back on the seat. At the warehouse, Eddie jumps on Paula before she can pull the ropes completely loose.
At The Deep, Gregory thanks Ben and Meg for the show and leaves. Meg explains to a confused and flustered Ben about Gregory's suspicions. They both agree to keep up the pretense when Gregory is around. In the limo, as Tim begins to get really turned on, Caitlin suddenly turns off. Caitlin realizes that who she really wants is Cole. Meanwhile, Cole went still and focuses on Olivia's necklace again. Olivia pulls him back into the embrace, and the two lie back on the bed. Ricardo gets a message on his machine from Paula and is hurt and confused when he hears her say that things are moving too quickly and that she needs some time and is going away for a couple of days. At the warehouse, Paula panics as she hears a clip being loaded into a gun. Eddie takes aim and fires...
Tim reveals to Gregory that Olivia is nowhere to be found, then flashes back to nearly seducing Caitlin in the limo. Meanwhile, in bed with Olivia, Cole starts to examine the necklace she's wearing. At Elaine's Waffle Shop, Meg continues the deception about Annie's death and her new relationship with Ben. Ricardo accuses Elaine of poisoning Paula against him and demands to know Paula's whereabouts. Asleep on Ben's couch, Annie dreams of blood appearing on her hands and wakes screaming. Ben comforts Annie, remarking that the nightmares will end once they discover who really killed her father.
Annie gets annoyed when Ben tries to explain Meg's noble sacrifices on Annie's behalf. Recalling the spontaneous kiss the night before, Ben remarks that Meg has gone "above and beyond the call of duty." As the doorbell rings, Annie hides behind the pillar as Ben opens the door to Meg. At the Richards' home, Gregory leaves the room and Caitlin thanks Tim for driving her home the night before and apologizes for her behavior in the limo. Tim sympathizes with Caitlin's situation and offers words of advice, recalling his own experience with Meg. Cole takes the necklace off a sleeping Olivia and dresses and leaves. At the Waffle Shop, Ricardo reveals to Elaine the plans to elope that he and Paula had, and realizes that Elaine had nothing to do with Paula's leaving. Meanwhile, handcuffed to the bed, Paula demands that her abductor [Eddie] unlock her cuffs, and angrily demands that he do whatever it was he intended to do to her. Eddie bends over and kisses her roughly.
Playing the seductress, Paula begins to encourage Eddie. At Ben's, Annie asks for a moment alone with Meg, so Ben leaves to take a shower. Annie offers an olive branch to a skeptical Meg, who accepts it. Meg makes it clear that she's aware that Annie considers her competition, and is also aware that Annie questions her motives. Annie is disgruntled with Meg's correct analysis. Meg gets up to leave, and opens the door to Gregory.
Gregory lets himself in, and a frantic Meg tries to make small talk, as Annie hides behind the pillar again. Ben comes down in his robe, and insinuates Gregory has interupted an intimate moment between himself and Meg. At the Richards' home, Olivia sneaks in to find Caitlin daydreaming in the living room. Caitlin told Olivia that her boyfriend dumped her because he wants an older more sophisticated woman. Olivia offers to take her daughter out for ice cream sodas; Caitlin would prefer a cappucino. At the Waffle Shop, Cole pumps Elaine for more information about the famous "Deschanel Legend". Cole asks specifially about information on the Deschanel gala, which features the famous family jewels. Paula sabotages herself when she urges her abductor to remove the handcuffs. Frustrated, Eddie begins to tear up the room.
As Paula sobs on the bed, Eddie wonders if she has discovered his secrets, then leaves her. Meg and Ben continue to play the happy couple in front of Gregory. Ben demands to know why Gregory has dropped by; Gregory reveals that he's resigning as legal counsel for Annie's estate. Ben comments that Gregory appears to be fishing, so Gregory drops the pretense and makes it clear that Ben's investigation is bordering on harassment. Ben refuses to be intimidated and Gregory leaves making a parting shot at Meg. As Annie comes in and blasts Meg for getting too close to Ben, Ben decides to pay Ricardo a visit. Arriving at the Waffle Shop, Olivia runs back to the car for something, leaving Caitlin to run into Cole.
Pointing out that Sunset Beach is a very small town, Caitlin icily orders Cole to stay away from her favorite haunts. As Caitlin swings angrily into Elaine's Waffle Shop, Olivia comes up to Cole and hastily motions him to stay silent as Elaine comes up from behind him. Gregory thanks Tim for keeping unwanted male suitors from Caitlin and gives him a bonus. Meanwhile, Ricardo arrives home just as Eddie is searching the apartment for Paula's notebook.
With Eddie hiding behind the door with gun drawn, Ricardo rushes in to answer the ringing telephone. As Ricardo angrily orders the caller to hang up [as he's waiting for some word from Paula], Eddie slips out the door. Ben arrives and asks Ricardo to join in his investigation to clear Annie's name. Ricardo agrees, and Ben questions him about the Richards' whereabouts the night Del Douglas was shot; the reluctant partners agree that it's curious that Gregory and Olivia have an ironclad alibi [they were having dinner with a Congressman]. Outside the Waffle Shop, Olivia covers by pretending to ask Cole the time, for Elaine's benefit. Cole makes a gracious exit, and Elaine asks if Olivia thinks that Cole is a dead ringer for Armando Deschanel; Olivia's stunned when she sees the photo of Armando, and agrees. At the Java Web, Cole gets information on the necklace from an appraiser [the same that Eddie went to], asking if the jeweler has seen similar pieces. The jeweler has, but refuses to divulge any other information, although he offers to contact the "owner" of the brooch and see if he wants to sell. Meanwhile, Eddie returns to his hideout and victim and admires the brooch.
Olivia and Caitlin arrive home to find Gregory and Tim waiting for them on the couch. Caitlin runs upstairs while Tim hovers in the living room as Gregory expresses concern for Olivia, noting that she wasn't home all morning. Ben returns home to Annie and Meg and fills them in on his visit with Ricardo. Annie flashes to the night of the murder and recalls herself, wiping the blood off her hands; she drops her drink, panicked. Meanwhile, Ricardo finds Paula's necklace on the floor and plays back her message on the machine, and hears a train whistle in the background. Disoriented, Paula panics as her kidnapper [Eddie] begins to rip her shirt apart.
Casey and Rae continue their renovation on the beach house. Vanessa brought a copy of her article to Michael. Tiffany brought the back the "treasures" she's scavenged to the abandoned day care center she's sacked out in, unaware that Sean is watching. Ricardo continues his search for Paula, and encovers proof at the train station that Paula's message was a fake. Eddie continues to monitor Paula by remote camera, videotaping her struggles as a "gift" for Ricardo.
Casey and Rae platonic friendship is plagued by a mutual sexual tension. Michael tries to convince Vanessa that publishing her story will cause JoJo to come at her even harder, but Vanessa is adamant that the article will put JoJo behind bars. Ashamed to be found in the dump, Tiffany continues to pretend that she doesn't live in the abandoned building and orders Sean to leave. The Chief of Police berates Eddie for not doing his job, but he's saved from a tongue-lashing when Ricardo comes in demanding his badge back. Ricardo informs the Chief that Paula's disappeared and that he wants to look for her, which prompts Eddie to volunteer to "help" find his partner. Eddie listens in with interest as Ricardo explains the audio clue on Paula's message - a train whistle. Although the Chief implies that Paula got cold feet about the elopement, she agrees to reinstate Ricardo as detective. Meanwhile, Paula continues to work at loosening herself from the handcuffs.
Vanessa stubbornly insists on publishing the article, while Michael remembers back to his confrontation with JoJo, who had intimated that there was an incident in their mutual past in the "old neighborhood" that he [JoJo] couldn't forget, even if Michael could. Back at his apartment, Ricardo receives the videotape. Careful of any possible fingerprints, Ricardo plays the tape of a struggling Paula and breaks down in tears.
Sean returns to Tiffany's place with a peace offering, and reveals he knows the truth about her being a runaway. Tiffany figures out that Mark was the one who revealed her secret and sadly told Sean that she's aware she's a "nothing" compared to Sean. Tiffany went on to give a bald description of being a homeless teenage runaway. Back at "Surf Central", the unofficial name for the beach house, Mark asks for an extension on his rent and explains to Rae and Casey [the landlords] that he's saving for a car. Casey figures out that Mark wants a car because of a girl. Vanessa arrives triumphantly waving her article for the gang to read, and happily states that now she can pursue a personal relationship with Michael. Casey and Mark encourage Vanessa, while Rae warns her to be careful of following her heart too quickly. With the videotape as proof, the Chief gives the officers their assignments to find Paula as Eddie listens in to Ricardo's outline of the investigation. Michael arrives and asks Ricardo for protection for Vanessa; Ricardo agrees to put a man on Vanessa. Eddie makes sure that he and Ricardo are partnered to find Paula. Meanwhile, Paula continues to put pressure on her wrist, trying to slip it out of the cuff.
Noting Michael's request for a few days off, Casey advises Michael to go after Vanessa, while Michael encourages him to pursue Rae. Back at his apartment, Ricardo shows the tape to Eddie; Ricardo tries to determine if any current cases that Paula and Eddie were working on is the key. Eddie turns it around and asks if any cases Ricardo and Paula were working on is the key. Ricardo told Eddie to turn the place upside down to find Paula's notebook. Eddie finds the notebook, and remembers when Paula was taking notes at the jewelry shop. Ricardo grabs the book from Eddie and starts to read through Paula's notes.
A tense Eddie has his gun ready as Ricardo reads aloud wedding plans from the notebook; Eddie grabs the book and flips the pages frantically as Ricardo questions the cases that Eddie's on. Ricardo grabs the notebook back and continues reading. Tiffany told Sean that if she had a half-decent family, she'd never have run away. Sean makes it clear that they have that in common, and the two make peace as Sean promises to save table scraps for Tiff's dog, Spike. Sean invites Tiffany to the family cocktail party, but Tiffany freaks out and won't embarrass herself a second time and orders Sean to leave but he stubbornly decides to stay. Meanwhile, Mark takes a second job at Sean's house as bartender for the cocktail party. When Rae asks Casey, what's bothering him, Casey reveals that he suspects that Michael is planning to leave Sunset Beach. Remembering Michael's advice, Casey decides to act on it and pulls Rae into a more than platonic kiss.
When the kiss ends, Casey pleads his case to Rae, telling her that they shouldn't fight their feelings. Rae tries to walk away again, but Casey pulls her back and told her that he wants to be her lover - the man she comes home to. Casey gives her an ultimatum - either they become lovers or it's over. Casey leaves the house and Rae runs upstairs and out onto her bedroom balcony, where she watches Casey run off his frustration on the beach. Meanwhile, Michael turns up at Vanessa's door to cancel their date and to tell her that even through the bad times, he really enjoyed being with her. When Vanessa tries to reschedule the date, Michael refuses and kisses her goodbye and leaves. Ricardo turns up at the Waffle Shop, where he runs into Gabby. Hearing that the elopement didn't go as planned, Gabby makes another play for Ricardo, who walks away. Ricardo told Elaine that Paula's been kidnapped. Unable to work off the handcuffs, Paula begins to work at the screws on the metal headboard. Just outside the door, Eddie smirks to himself as he acknowledges his mistake in believing that Paula had been investigating him for stealing the Deschanel family jewels. Eddie wonders what he's going to do with Paula now...
Tiffany won't allow Sean's family to make a fool of her again, but Sean wants Tiffany there with him because he really likes her. Now prepared, Tiffany vows that Gregory Richards will not intimidate her again. At his apartment, Michael is wary to see JoJo making himself at home. Michael asks JoJo if he's going to kill him like he tried to kill Vanessa. JoJo makes it clear that he's there to collect on the favor that Michael owes him for saving his life in the "old neighborhood". JoJo pulls his gun for emphasis. Frantic, Ricardo pumps Elaine for any information she has. When Elaine demands to know why Ricardo wasn't with Paula the previous night, Ricardo guiltily glances over at Gabby. Speaking to the monitor displaying Paula, Eddie laughingly told her that he has to go help Ricardo catch the "sicko" who did this to her. Paula freezes as she hears someone enter the room...
Hearing someone come into the room, Paula angrily demands to know what he wants - unaware that it isn't her kidnapper [Eddie]; meanwhile, Eddie plays supercop with Ricardo on Paula's search. Annie is annoyed when Meg turns up dressed to kill as Ben's date for Gregory's cocktail party. Caitlin continues to brood over breaking up with Cole, while Cole spots Olivia in the Waffle Shop with Bette comforting Elaine. Vanessa turns up at the beach house looking for Michael, and is panicked when she gets a call from JoJo - who has Michael at gunpoint. Vanessa agrees to a meeting at the Marina.
Ben makes it clear to a jealous Annie that she is NOT to try and follow him and Meg to the party. Annie continues to have visions of blood on her hands. At the Richards', Sean asks Caitlin to lend Tiffany an outfit. Eddie plays on Ricardo's guilt about not being there for his fiancee. The stranger asks Paula if she's all right, lifts her blindfold, and ominously asks Officer Paula Stevens if she remembers him. Back at the Richards' home, Cole breaks into Olivia's room and begins to go through her things.
Rae is impressed when lifeguard Casey comes downstairs in a suit. On his way to the Richard's party, Casey asks Rae to be his date - Rae runs upstairs to get ready. Gregory isn't pleased to see Tiffany, referring to her as "trash". Gregory draws Caitlin away, while Olivia graciously welcomes Tiffany to the party. Gregory expresses uneasy surprise that Ben has turned up with a "contribution" for Congressman Boleris, then is told by his PI that things are heating up with "that reporter, Vanessa Hart." JoJo continues to insinuate that Michael "owes" him. When Vanessa turns up at the Marina, Michael calls out that it's a trap. Vanessa quickly ducks behind some crates. Paula recognizes her "rescuer", Ralph Meyers, as a man whom she arrested for speeding - and who had been convicted of several rapes.
Cole continues to ransack the room; downstairs, Tiffany begins to target Olivia as she remembers what Sean told her about his mother the night of Del Douglas' murder. Gregory plays the concerned father and told Caitlin that there's a gift waiting for her upstairs in his room. While Meg charms the Congressman, Ben works on the Congressman's wife. Seeing Casey and Rae arrive, Gregory warns Casey to behave himself and not to trumpet any of his "causes". When Casey and Rae express surprise that Meg is there with Ben, Gregory realizes that Ben is up to something. When Ralph leaves Paula, he's welcomed by Eddie, who warns him not to damage the merchandise. Cole begins to crack the Richards' safe, unaware that Caitlin outside the main door to the room.
Hiding quickly, Cole listens as Caitlin finds Gregory's gift and puts the earrings on, then continues his safecracking after she leaves. Elaine turns up at the police station, where Ricardo reveals that they believe Paula was abducted by someone she knew. Meanwhile, Eddie orders Ralph to "do Paula exactly like the others." JoJo starts to stalk Vanessa in the warehouse, asking her if she knows about Michael and what happened on Grant Avenue. Just as JoJo has Vanessa in the line of fire, Michael attacks him from behind and knocks him out, and the two escape. JoJo is chastised by Gregory's henchman. Gregory corners Meg about her "relationship" with Ben, who quickly comes up behind her to protect their cover with a convincing kiss. After comparing notes on the Congressman and his wife, Ben later instructs Meg to work on the weak link - Sean. Tiffany dismisses bartender Mark when he refuses to serve her champagne. Sean confesses to Meg that he wasn't completely sure when he picked Annie out of the line up.
Environmental activist Casey and Congressman Boleris butt heads over an oil spill; Rae is increasingly confused by Casey's political connections. Gregory interrupts Meg and Sean; Meg covers by saying they were discussing their work shifts at the Java Web. Meg triumphantly told Ben that Sean never actually saw the woman leaving Del's hotel room. As Paula finally manages to untie herself, she glances up and realizes she's being watched by camera; Eddie smirks at Paula's image on his monitor.
Back at the beach house, Michael speculates that someone bigger than JoJo is involved and is pulling his strings. Michael and Vanessa share a kiss. Vanessa wonders what JoJo meant about "Grant Avenue", but before she can ask, Casey and Rae arrive home. Rae expresses admiration for the way Casey stood up to the Congressman. Although Rae wants to know more, Casey chooses not to elaborate. Annie wakes from a nightmare as Ben and Meg arrive home. A jealous Mark watches a sweet moment between Tiffany and Sean. Boleris and his wife have a very public confrontation and Gregory worries that Mrs. Boleris is unstable and may blow the alibi he set up for the night of Del's murder. Paula begins to pick the lock on her door.
Annie refuses to share her nightmares with Ben. Olivia catches Cole just as he tries to slip out the window. Ricardo told Elaine that they believe a "Ralph Meyers" may be the one who kidnapped Paula. On the monitor, Eddie watches as Paula manages to open the door - to an appreciative Ralph.
Cole, Olivia, Caitlin and Gregory
As Olivia confronts Cole for breaking into her room, Cole quickly begins to seduce her. The two fall back onto the bed, not noticing that the mother/daughter portrait of Olivia and Caitlin has fallen off the nightstand and shattered on the floor. Downstairs, Gregory comforts Caitlin over her breakup with Cole while secretly gloating that Caitlin his all his again. When Olivia notes that a necklace she was wearing the first night she spent with Cole is missing, she begins to insinuate that Cole is a pirate come to plunder Sunset Beach of the Deschanel jewels. To distract her, Cole makes love to her again, but can't help imagining that Caitlin is the woman he's with. When Gregory expresses concern about Olivia's whereabouts, Caitlin heads upstairs and knocks on her mother's bedroom door.
Meg, Ben and Annie
When Casey brought home a box of cast-off clothing that had been at the lost and found lifeguard station, Meg rummages through it. Finding a coat to her liking, Meg begins to clean off the stains, only to find that it's dried blood. Alarmed, Meg calls the police department. While on hold, Meg went through the pockets, and finds evidence that links the blood soaked cloak to Annie. When she questions Casey, Meg discovers that the coat had been in lost and found for about a month. Meanwhile, Annie confesses that what she thought was nightmares may actually be memories, and told Ben that she's afraid she may truly be her father's killer. Ben manages to calm Annie down, but Annie is shattered again when Meg arrives with the damning evidence.
Ricardo, Paula, Eddie and Ralph
Obtaining the report on Ralph Meyers, Ricardo notes that Ralph has a signature - he tattoos a heart with a teardrop on the chest of his victim. Ricardo also discovers that Ralph has unresolved issues about his late mother. While Ricardo tries to rush a search grid, Eddie mentally plans his "rescue" of Paula. Eddie envisions bursting in to find Ralph and Paula together, then shooting Ralph dead, thereby obtaining Paula's undying gratitude AND getting rid of an unwanted witness. Meanwhile, Paula is prevented from escape as Ralph grabs her and injects her with a drug to subdue her. Waking, Paula groggily notes that she's been strapped into a chair by duct tape. There is also a surgical tray laid out nearby. When there is a delay in obtaining the search grid, Eddie begins to panic that Ralph will lose control with Paula before Eddie can "rescue" her. Sure enough, Paula's stalling Ralph with questions about his mother, which incite him to react violently. No longer careful with her, Ralph tattoos Paula's left breast with his signature teardrop heart as Paula cries out in pain. Finishing his work, Ralph drugs Paula again. Ricardo finally obtains the search grid and assigns his men to their sectors. Out in the field, Eddie and Ricardo rush the room with guns drawn...