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.
Virginia cooks breakfast for Michael, but is upset when she learns that he's at Vanessa'a serving her breakfast. Virginia told Jimmy that their going to move back to South Central, that they need to be out before Michael gets home. Jimmy leaves, and Virginia just stands there with a grin on her face.
Michael arrives at Vanessa's with a basket full of muffins and a bouquet of flowers. Michael says he's sorry for their fight, saying he wants to spend the day with her, she says she has to go to work...but then she calls into her job saying she won't be in. Michael and Vanessa almost make love when there's a knock on the door. Jimmy's at the door saying he needs to talk to Michael privately. Jimmy told Michael that Virginia said they had to go back to South Central, which prompts Michael to leave. Vanessa is sure that this is all a set-up and says if Virginia wants war...she's going to get it.
Tim calls Annie (while Meg is sleeping) to tell her that Meg slept at his place, which prompts Annie to come up with yet another plan...
Ben did indeed spend the night at Surf Central waiting for Meg who never showed, Ben leaves and went to the Police Station and talks to Ricardo to report Meg missing. Annie shows up at Surf Central saying she left her hairbrush there, when she's actually waiting for Tim to call. Just when Mark is throwing Annie out, Tim calls Mark to say that Meg is okay and she spent the night with him. Annie "conveniently" over hears the conversation.
Annie went to Meg and "accidentally" is forced to tell him that Meg slept with Tim last night, Ben storms off.
Meg awakes and says she's glad to see that Tim has been such a good friend. Meg says she isn't ready to go to Surf Central or see Ben yet. Tim tells her she's welcome to stay there for the afternoon, he told her to go get a shower while he went gets breakfast. While Meg is in the shower, Tim messes up the bed, takes his clothes off, and throws Meg's clothes on the floor...making it look like they slept together so Ben sees this when he arrives. Right on cue, Ben arrives, Tim calls Annie to say he is there, and leaves the phone off the hook so Annie can hear everything. Ben waltzes in and is shocked to see Meg's clothes on the floor, and Tim in only a pair of briefs...then Meg comes out of the shower in only a towel...
While Caitlin and Cole are at the waffle shop, a beautiful woman bumps into Cole, which sort of makes Caitlin jealous. She even has a fantasy of the two together on the beach, but then she scolds herself saying the "other woman" meant nothing to Cole. Cole told Elaine about the offer Gregory gave him and Caitlin to move into a condo. Elaine wonders if he won't take the offer because Gregory offered it, or because he's afraid to settle down. He assures Elaine he loves Caitlin and wants to be with her. Gregory went to see Elaine. Right away, Elaine says she already knows why he is there...to convince Cole to take the offer. Elaine says she can't say anything since she's not too sure about the offer herself. Elaine told Cole that Gregory stopped by...Cole storms out of the Waffle Shop.
Eddie calls Gregory and asks him to meet at the Marina. Bette sees Eddie and makes a deal...she'll pay him for first hand information on ALL his cases...including Gregory's...money talks, so Eddie agrees.
Gregory asked Olivia to look at some pregnancy pillows, Olivia just stood there in awe. Olivia says she still can't believe what he wants her to do, he claims they have to take the risk for Caitlin's sake. Gregory gives Olivia a file and told her to get rid of Tiffany. Olivia agrees to do so. Gregory reminds Olivia he needs an answer today on whether or not she will go through with the plan.
Olivia told Bette about Gregory's plan. Bette can't believe it, but says it might be a solution to all problems...Bette suggests that she say there were Twins...to explain Caitlin and Olivia's baby. Olivia reminds Bette that they conceived months apart.
Cole waltzes in on Gregory and told him that he is disgusting for using Elaine to bring down Cole.
Eddie makes Gregory give him money saying he needs it to pay people off if he wants the scoop.
Caitlin, watching Cole deep in thought, asks what's the matter. He says he just can't be sure if Caitlin loves him the same way he loves her. She says she loves him with all her heart, and that she wants to marry him, but a piece of paper will change nothing.
Vanessa went off in search of a scoop. She talks to Dr. Tyus about Virginia and how he knew her. He says Virginia is a good person, and he met her when he pronounced Virginia's husband dead.
SURF CENTRAL Virginia told Michael that she is leaving, but then he convinces her not to go. They go and tell Jimmy the good news.
Ben throws Tim out of his own home. Ben wants to know what went on between the two. Meg says he has no business interfering in her life. Ben asks Meg to look him in the eye to tell him Tim and her slept together...she can't do it. Ben kisses her passionately, but she pushes him away and forces him to leave. He does leave, but not before saying that they love each other and should be able to work everything out.
Annie went to Ben once he gets back from Tim's. Annie notices Maria's painting is gone and asks him where it's at. Ben says he put it away, it's about time he moved on with his life.
Tim went to see Meg, she's crying and leans on him once again. Tim told Meg that they really should leave...leave Sunset Beach and go to Kansas.
Olivia tipped Gregory off that Caitlin was standing in the hallway while he and Cole were talking. Gregory gave Cole an envelope full of pictures of Cole and some lover. Gregory claimed he gave them to him to show just how much he cares for Caitlin...Cole can do what ever he wants with them. Olivia forced Tiffany to write Sean a goodbye letter. She also gave Tiffany a check to leave Sunset Beach for good. Gregory announced to Cole, Caitlin and Sean that Olivia is pregnant.
Annie told Tim about Ben's memory loss in the cave and Ben thinking Meg was Maria when they slept together.
Meg told Mark about what really happened in the cave. Mark advised her to tell Ben the truth, he loves her and would understand.
Annie let it slip that Ben was in the cave for 20 hours. Ben had no clue it was that long. He went to the hospital to see Dr. Robinson to get some answers. Dr. Robinson told Ben that Meg had said he was delusional and was afraid when Ben awoke, he would have no idea who she was. Ben now knows he needs to fill in the blanks.