Gregory says he is thrilled to learn that Olivia is pregnant...sort of. It's all part of Gregory's plan to keep Cole and Caitlin apart. Olivia is to announce that she is pregnant, forcing Caitlin to keep mum about her own pregnancy. Olivia is then to say she's experiencing a difficult pregnancy and went off to a special hospital in San Francisco. Caitlin will then follow...Olivia then says she miscarries and hopefully convinces Caitlin to give her baby up to her mom and dad to spare them the pain of going through another miscarriage. Olivia asks Gregory how he can really expect her to go through all of that considering they never really talked about their "real" miscarriage. Gregory replies she should do it for Caitlin's sake. Olivia says that she does indeed want to help Caitlin. They then kiss passionately.
Caitlin talks to Spike and wonders if she can trust Cole with a secret, if she can tell him Olivia is pregnant. Cole then enters saying what secret does she want to tell him. She says nothing and he responds if she can trust Spike, then she can trust him. She says she can't tell him because it isn't her secret. Cole says he wants to tell Elaine about the pregnancy, but decide against it since it is still early in the pregnancy, there may still be a chance something went wrong with the baby and they do not want to give Elaine false hope. Same reason they won't tell Gregory quite yet.
Ricardo is the mysterious person who enters Ben's house. He went up to the studio where Ben is. Ben is talking to the picture of Maria saying he is moving on. Ricardo wants to know what really happened the night of Maria's death. Ben wants to declare a moratorium, Ricardo will only accept if he knows the truth. Ricardo says Ben knew a storm was coming, and is confused as to why he would have set sail on the boat. Ben recounts the night on the boat to Ricardo, but he is convinced Ben is still leaving things out. Ben refuses to say, and after Ricardo leaves, he says it's best some secrets stay in the grave.
Meg and Annie go at it in an all out fight! Meg throws some of Annie's priceless vases on the floor. Meg even throws one of Bette's ex-husbands (#4) ashes on the floor...glass and ashes are everywhere. Meg reads some of Annie's entries to Annie saying she was so clever, and sick for forging her best friends handwriting. Meg then accuses Annie of setting it all up...setting up finding key to the room...even setting up the room. Annie stands there with a surprised look on her face, denying it all, but Meg knows better. Meg threatens to go tell Ben everything, but then Annie turns it around and says she'll tell Ben that he made love to Meg already. Annie wants to know everything that happened in the cave. After realizing Ben was delusional, she asks Meg once again what happened. Meg refuses to say and leaves.
Annie follows Meg to Surf Central. She continues to insist something happened in the cave. Annie finally puts two and two together...that Ben thought he was making love to Maria when he made love to Meg!!!
Olivia told Gregory that Caitlin will never give up her baby. Caitlin wonders why Gregory is so happy lately. He even repeated that Cole is welcome there...Caitlin told Gregory about Cole's name change to Deschanel. Caitlin went and talks to Olivia and says she thinks Gregory has an ulterior motive. She thinks Olivia told Gregory about her and Cole's baby, Olivia says she has told him nothing. Cole told Gregory that he knows he's up to something, Gregory denies it saying he has been defeated and only wants Caitlin to be happy, even if it means being with Cole. Olivia slaps Gregory saying she can't believe he would want to go through with a plan like that. Gregory says their doing the right thing.
Annie told Meg that she is disgusting for pretending to be Maria to sleep with Ben. Annie wonders how the people back in Ludlow would feel to see this pathetic Meg. Meg stops Annie short and told her she's going to tell Ben about the diary entries. Casey throws Annie out or the house. Meg calls her mom, but then hangs up when Tim is at the door. Meg cries on Tim's shoulder saying she wished she had never came to Sunset Beach, she just wants to go home! Ben, looking for Meg, went to Surf Central. He knocks on the door, but Meg doesn't want to answer, she and Tim go to his place to hide from Ben, she says she doesn't want to talk to Ben right now. Mark comes home and lets Ben in the house, they search for Meg but she is no where to be found...Ben says he's staying at Surf Central all night until she comes home.
Bette comes home and sees all her precious belongings in little pieces...even "Enrique" her fourth husband's ashes. Casey warns Annie to stay away from Meg. Annie told Bette she's just about pushed Meg out of the way...her plans are finally working.