Diane suggested that Kyle, Graciella and herself move into The Abbott house, which woukd enable Diane to look for a new job and residence without forcing Kyle to grow up in a hotel. It would also give Jack a chance to bond with Kyle. Jack suggested he rent Diane and Kyle a house in his neighborhood, but Diane thought that was no better than a hotel. So Diane dangled the Tokyo job in Jack's face to get him to let Di, Kyle and Graciella move in. Jack told Diane if she move to Japan it will effectively cut off any chance of a relationship with Kyle except for 1 block of time in the summer. Diane reminded Jack she came up with the only working solution (to move in), but Jack rejected it. Jack says the solution is not workable because of Phyllis! Diane reminded Jack that he said he would keep Phyllis in check during visitation or Phyllis would not be there during Kyle's visit. Jack said visitation is not an issue, but that is Phyllis's home too! Living with them (Jack and Phyllis) is not option! Diane claimed the move would be a wonderful opportunity for Kyle, living in a different culture, besides Jack was being very loyal to Phyllis, but Phyllis wasn't loyal to him. Jack defended Phyllis and told Diane to stop trashing his wife, she went through hell on the stand, for him! Diane wouldn't give up and told Jack, Phyllis tried to get her out of the country so he couldn't bond with Kyle. Diane went on to tell Jack everything about Phyllis's plan but Jack wouldn't believe her, so to convince him, Diane told Jack to "imagine me in a red wig with Phyllis's clothes, and her in a wig with my clothes"! And to remember how shocked Phyllis was to see Diane in court, because Phyllis was already convinced Diane was back in Milan. That is when Jack remembered Phyllis in a red wig at Gina's!! With a smirk on her face Diane said she took no pleasure in tattling on Phyllis, and she never intended on telling Jack, but he left her no choice when he didn't believe her and that his opinion means a great deal to her. Jack just stood there with his mouth open and a shocked expression on his face.
Michael went to see Phyllis about Diane's plan to stay in town and take her man. Phyllis wasted no time in calling Michael a "pathetic little man, who look and act strong and independent! Must be hard work keeping that illusion alive. You don't have a loyal bone in your body!" She also called him a breathing, living dummy whose strings are being pulled by Christine. She also called him a "pathetic excuse for a human being". She blamed the court debacle on Michael! Phyllis thought Michael crucified her on the stand to impress Christine. Michael still tried to help Phyllis by telling her Diane was after Jack. Mike told Phyllis, Diane claimed she lost her job and is not leaving Genoa City. Phyllis doesn't believe Diane is any competition. She said Michael should hear what Jack has to say about Diane and that Jack hates Diane. Phyllis said she has nothing to worry about, because Diane tried to the same thing with Victor and look where that got her. She said Diane has no clue! Phyllis said, she's going to win and Diane's going to lose. She then told Michael to get out. After Michael left, Phyllis sat at her desk looking worried....
Jack showed up at Phyllis's office and said he had a proposition for Phyllis regarding Kyle....and Diane.
Chris arrived at the office to find out Alex had resigned. Chris said when she didn't see Alex, she thought they just missed each other. Alex left a note saying her goodbyes and letting Chris know, the rent was paid up for a few months and Chris could stay there. Chantal said it was a sign that Chris should stay and that they ALL would love to have Chris back for good, but Chris flashed back on Paul in the hospital begging Isabella to stay alive for the sake of the baby. Kathryn stopped by to report to Chris that she talked to Paul and Isabella is out of the woods, therefore she and Paul could finish what they started. Chris said since Sharon and Nick were reconciled she had no commitments and could go back to Australia. Kate told her she could go to Timbuktu, but she needed to finish her conversation with Paul. Kate told Chris to focus on her reasons for staying. Kate says there's a baby, a mother and perhaps a relationship, but, bottom line, Chris and Paul were discussing their relationship and future, finish it and don't let anything stop them or stand in the way of them finishing their conversation. After Kate left, Chris flashed back on Paul kissing her...
Paul was distracted. But Isabella was on cloud nine saying she and Paul were going to be terrific parents, especially since she and Paul were so close and had found their way back to each other. Paul was about to explain his mood to Isabella , but there was a knock at the door. Grandma Mary showed up to see the baby. Isabella was ecstatic that Mary showed up. Paul was happy too. The nurse showed up with the baby. Mary held her grandson for the first time. Isabella asked Mary's opinion on the baby's name and wanted know what she thought about naming the baby Carl, after Paul's father. Mary was unsure. Isabella gave Mary a standing invitation to visit the baby anytime at "the apartment". Mary thanked her and left. Isabella felt things had changed since Mary made the effort to see the baby. Paul went to check on Isabella's release and found Mary waiting to speak with him alone. She remarked on Paul's love for the baby, but his lack of interest in Isabella. She said he was holding back. While Isabella constantly used "we", Paul barely said a word. Mary said she knew Chris was in town and asked Paul was he wishing the baby was Chris's baby! Without another word Mary left. The nurse told Paul he had a call on the courtesy phone...
It was Chris! She asked Paul to meet her.
The Coffee House/ The Islands
Nick and Sharon wanted to call home and speak with Nikki to found out how the kids were. Diego had just asked Nikki how Sharon and Nick were doing when Nikki's cell phone rang and the happy couple was on the phone. They spoke with Cassie, who could tell they were back together because they both sounded so happy. After confirming her parents were back together, Cassie and Nikki hugged and laughed to celebrate the reunion. Cassie was ecstatic. Diego was not! Cassie asked Nikki if they could have a party to celebrate the reunion and her parents return. Nikki didn't think they had time but to Diego's surprise, Cassie asked him to help. Diego couldn't say no, so the planning started. Nick mention to Sharon that it sounded like Nikki and Cassie were at the Coffee house and everyone would know they were reconciled by the time they got back. Sharon looked uncomfortable. Nikki told Victoria about the reconciliation and the party. Including Diego helping out. Victoria wasn't too happy. The party plans looked great and Victoria expressed how she wanted to help all to Diego dismay. Cassie wanted to call and get Miguel's help. Victoria kept a wary eye on Diego and walked up on him daydreaming about Sharon. Victoria remarked on the good news and Diego's help with the party. She said since he was a good friend with Cassie's Mommy and Daddy, his support and goodwill towards them will be strong as ever when they returned. Victoria said she's counting on it!! Sharon and Nick discussed going home. Nick said he hoped Cassie and Nikki would spread the word and everyone who was rooting for them, including Diego would know they were back together. Nick went looking for coconuts. Sharon had a flashback on her night with Diego and feeling guilty ran off to find Nick. Victoria said her goodbyes and gave Diego the evil eye on her way out.
When Nikki went to pay the bill Diego said he would be giving her his notice....
Ashley came downstairs looking devastated. She found another lump! With tears in her eyes, she asked Brad why was this happening to her. Doctor Nora said Ashley was right. There is a lump that was not there before. Brad asked if it could be a cyst, the doctor said maybe, but they should go to the next step. An ultra sound was arranged. When Ashley returned to Brad, after the ultra sound, she said the doctors were really quiet and just staring at the screen. Brad told her to be positive. She said she would be optimistic even though it didn't help last time. The doctor came in and explained that there was something there Ė something that needed to come out.
Paul and Chris discuss their future together. He wants to try to work it out but Chris tells him that she must have given him the wrong impression.
Island: Nick and Sharon prepare to return home. Both are apprehensive about returning for fear that the magic they recaptured will be lost back in GC. They find a camera and have some lighthearted fun before going home.
Nikki is shocked that Diego is giving his notice. She thinks it's just his wandered nature. When he later tells Raul, his brother becomes very upset at his brother for abandoning them again.
Diane visits Isabella and they talk about the baby and who great Izzy's life is right now. SHe's sure that everything with Paul will work out now.
Lauren's back from a trip and bumps into Mary who's more than happy to drop a little bomb on her: Christine's back. Lauren is stunned but doesn't see how that impacts her. She then chides Mary from butting in where she doesn't belong once again.
Jack can't believe Diane would even suggest having her move in, even to the pool house. It's unworkable. She sees no viable alternative as she doesn't want to live anywhere with the baby by themselves in GC if she has no good job. She then drops a bomb by revealing to Jack Phyllis' part in trying to get Diane and Kyle out of the country.
Jack later tells Phyllis about Diane's plan which Phyllis torpedoes. Jack then asks her if what Diane said was true. He demands an answer.
Katherine and Lauren talked about Paul's situation after Lauren admitted that Mary had told her the baby had been born and Christine was back in town. Katherine asked Lauren how she felt about it all. Lauren said that even though she and Paul shared a romantic past, his friendship was the most valuable thing to her, and she had little hope of a reconciliation between them. Katherine then said that Paul and Christine had unfinished business between them that she hoped they would clear up before it was too late.
Christine told Paul that he might have misunderstood her reaction when they kissed after unexpectedly running into each other. Paul was adamant that if her hesitation about exploring their feelings was because of Isabella, he fully intended to take care of his son, but he'd made no promises to Isabella. Christine speculated that Isabella probably didn't see it that way. She then explained that she was reminded of all the things that went wrong between them, including her commitment to her career and Paul's desire to start a family. She didn't want to resurrect something that had caused them both so much pain and heartache. When Paul asked if she intended to return to Australia, Christine said that might be the best thing. Paul emotionally apologized for misunderstanding her feelings and started to leave. Christine stopped him and wished him the best of luck, whether or not he decided to commit himself to Isabella. Paul told her that he felt sorry for her. One day she'd wake up and realize her law book was a very cold sleeping partner and her memory of this conversation would haunt her. As he left, Christine dissolved into tears.
Billy found Mac at Crimson Lights and asked if she was mad at him. Mac confessed that she was beginning to think he was right, and that her Ralph sightings were all in her imagination. She said he might also be right that it was because of her confusion about becoming sexually active. When Billy pointed out that she'd started being afraid of Ralph long after their breakup, Mac told him about the night she and J.T. had been making out backstage just before she thought she saw someone watching them. Billy was appalled to hear that she and J.T. had gotten so close. Mac changed the subject, saying that she intended to work it all out on her own. Billy made her promise that if she couldn't, she'd get professional help. Mac agreed, as long as Billy promised to tell no one that she was afraid she was losing it. When Billy then began badmouthing J.T. again, Mac accused him of being a hypocrite, since it was okay for him to see someone like Danielle but not okay for her to be close to J.T.
Larry startled Amanda backstage, but she calmed down once she realized he'd only brought them lunch. Unaware that Ralph was watching them, she allowed herself to relax, laughing about the play and how Larry didn't get Shakespeare until Cassie explained it to him. Amanda admitted she didn't always get it, either. After she thanked him for lunch, and especially for making her feel better, Larry said they would do it again. Once he left, Ralph took Amanda by surprise. He said that he remembered Larry as being one of the guys who showed up at the motel looking for him. He reminded Amanda that if she was setting him up for a fall, he intended to take her down with him.
J.T. and Brittany sparred for a few minutes about his no-show at the play and about Raul's intentions. Brit told him to get a life and walked into the computer lab, where she found Raul. Raul asked why her parents had not attended the play. Brittany explained that they'd received a last-minute dinner invitation from an important client. She got defensive when Raul criticized her parents, saying she'd rather have her affluent lifestyle than see more of her parents. Raul said it didn't bother him that they came from different worlds, but at least Brit should be honest about her feelings. He said he was willing to be honest about his. He then told her that Diego might be leaving town, even though he didn't seem to want to. When Brittany pressed him for more details, Raul explained that he'd promised his brother not to discuss it. He then suggested they go somewhere to be alone. He was hurt when Brittany accused him of wanting nothing but sex from her before she walked off.
Phyllis admitted to Jack that she had tried to get Diane and Kyle out of the country before the custody trial began. She reminded him of what she was going through then, having nearly died after trying the in vitro, as well as hoping a surrogate mother might be an option for them. She said she hated the way Diane was using her "kid" to insinuate her way into their lives, and Jack reminded her that Kyle was also his child. Phyllis accused him of thinking of no one but himself. Jack said she was merely using her accusations to divert the conversation away from her schemes. He then asked if her breakdown in court had been an act. Phyllis got upset and told him he knew she hadn't been acting. She asked if he was using his suspicions as justification for letting Diane and Kyle move in with them. She demanded to know whose idea that had been, and Jack finally told her it was Diane's idea. Phyllis said that was proof that Diane intended to try to get Jack back and demanded to know what his decision was. Jack said he'd let her know and walked out.
Diane was displeased to find Michael in her hotel suite. When he told her that he knew she'd arranged her termination from the architectural firm in Milan, Diane denied doing it in an effort to win Jack from Phyllis. When Michael presented her with job leads, Diane insisted she would make her own decision without pressure from anyone. She revealed to him that, meanwhile, she and Kyle might be moving into the Abbott house. Michael asked what kind of lies she had to tell Jack to make him agree to that. When Diane ordered him to leave, Michael asked why she was always using her child to chase a fantasy---first Victor, now Jack. Diane said the situations were different. Victor hadn't wanted a child, but she had Jack's child and he wanted one very badly. When she slipped up and admitted that she knew Phyllis couldn't have a baby, she was able to evade Michael's questions because Jack called and told her he needed to talk to her. Michael then went to see Phyllis. As they talked about Diane's scheme to move into the Abbott house, Michael warned Phyllis that his gut feeling told him she should be very scared of Diane.
Michael really had Phyllis upset when he told her that Diane knew that she couldn't have any children. She started beating up on him and insisting that he had told her secret until he convinced her that he didn't tell Diane and reminded her that he didn't use it in court. Michael encouraged her to think of a way to tell Jack and make him believe that Diane would use that against them. They gave up on that idea, but Phyllis vowed to have revenge. It wouldn't be a full frontal assault, but it would be effective. She left her office before Michael could find out what she had in mind. . .
Jack laid out his plan to let Diane and Kyle stay in the pool house for a few weeks. Diane acted like she were being kept in the "outbuildings" or with the servants and wouldn't go for it. They went back and forth acting like each one would back out of the deal completely before Jack made his final move. He reminded her that he was the one going above and beyond in this case and that he had no other agenda than to give her a home and some time to decide on a job that kept Kyle within visiting distance. He also told her that he was willing to wait on solving his problems with his marriage while they lived nearby for Kyle's sake. She went for it and told him that they would move in as soon as he gave the word.
Raul and Brittany continued their conversation about his intentions for the date at the lake. She was so hard to understand for him -- one minute she accused him of wanting only one thing and the next minute she acted like he had been trying to trick her. He set the record as straight as he could -- he had strong feelings for her and enjoyed her company. He would never push like he did with Rianna and was not using her for sex. He left her with a thought -- it was her that had hang ups and he had had enough of her accusations for one day.
Billy gave Mac a ride home and came inside to visit a little while. At first, he blasted her about dating J.T. and she didn't take that very well. Together, they did decide that it would be best for her to see a psychiatrist if her illusions of Ralph continued. Katherine found them in the living room and asked about Amanda staying overnight. She had an idea to invite Amanda to live with them there. Mac was happy about that prospect. Kay left to find Amanda and their moods improved. He made sure that she knew that her welfare was important to him. He also assured her that Ralph was not in Genoa City. . .
Amanda and Ralph argued about how she couldn't just start snooping around at the Chancellor estate while she was visiting the house on such a limited basis. He threatened her with the tape he made and wondered whether or not she was setting him up for a fall, using Larry Warton as a weapon. Soon, they heard a voice calling her name, so Ralph fled. It was Katherine wanting to invite Amanda to stay in her home. Amanda didn't get a chance to answer, but in the shadows, Ralph had a big smile on his face. . .
Christine received a visit from Lauren Fenmore at her office. She didn't really want to hear what Lauren had to say, but it was clear that she had no choice. Lauren's message was simple -- if Chris planned on moving her way back into Paul's life, she had better be in it for the long haul this time because there would be hell to pay if Paul was ever hurt again. Chris denied her feelings, but Lauren knew better. Chris kicked her out of her office, repeating the fact that she was headed for Australia and Paul was safe from her. Lauren left and Christine tried to look at files. She suddenly threw them down in an outburst of rage and sadness. She threw something at the door and held her head, crying. . .
Paul thought back about his last moments with Christine before he entered Isabella's hospital room. He entered the room and Isabella started rambling about how happy she was and how the future would be so wonderful. They decided to name the baby Ricardo Carl Williams -- Ricky Williams for short. Paul was rather quiet when she asked him if he was as happy as she was. She wanted to clear the air about Christine -- had he seen her that day that she collapsed in her apartment? He admitted that he had seen her that day and just came from seeing her before arriving at the hospital . . . .
Michael was concerned when he saw Lauren leaving Christine's office. He and Chantal went to check on her and found everything in disarray after Christine's temper tantrum following her confrontation with Lauren. Christine asked Chantal to book her a flight back to Australia the next day. She and Michael argued about whether she should leave Genoa City again. Not only did Michael need her at work, but he missed her as a friend. When his questions about her reasons became more personal, Christine told him it was none of his business. Michael demanded to know if Paul was trying to reconcile with her. She told him that she had seen to it that Paul and Isabella would be together, because Paul needed to do that for his child. She then began to cry. Michael changed the subject and the mood of their meeting by asking her if she was hungry. When she admitted that she was starving, he told her he would take her to dinner and made her laugh by saying she would have to pay.
Isabella began crying and accusing Paul of not caring about her when she found out he'd seen Christine on two occasions. She asked if her hopes for the future were just a fantasy. When Paul tried to explain his feelings for Christine, Isabella demanded to know where that left her. A nurse brought the baby in, and the two of them stopped arguing. Finally Paul told Isabella that he'd been surprised by his feelings for Christine, but he couldn't love their son any more than he did. He asked if he and Isabella could just take their relationship one day at a time.
Olivia came home early to spend some quality time with Nate before her business trip. She and Mamie talked about Neil. Olivia told her that Victoria had tried to lay a guilt trip on her for leaving town when Neil was having a rough time. She then said that sometimes you just had to wait for someone to come to you, and at least Neil wasn't drinking again. When Nate showed her a report he'd gotten a good grade on, she asked if she could take it with her to read on the plane. Nate said he wanted to show it to Neil first, since Neil had helped him. Olivia said it might not be a good time, but Mamie said that seeing Nate's report might be just what Neil needed.
Meanwhile, a drunken Neil was singing a blues song to himself in his apartment about quitting his job at Newman Enterprises. When Victoria showed up, he hid his liquor and tried to appear sober. But the more Victoria talked about what he was going through, the more agitated Neil became. When she told him that he might consider taking a leave of absence, Neil lashed out at her. He accused her and all the Newmans of interfering in other people's business, and hatefully told her that he had quit his job. Victoria was upset and told him that she wanted to help, as she knew what he was going through. Neil countered that she had no idea what he was going through, and he was not taking any more orders from her and "the great Oz" at Newman Enterprises. He then took a slug from his bottle, yelled at her to leave, and threw open the door to find Mamie, Nate, and Olivia standing there.
As Cassie and Nikki prepared for Nicholas and Sharon's homecoming, Nikki told Cassie that Diego had given notice for his jobs at Crimson Lights and at the ranch. Cassie was devastated to hear it, and when Diego joined them with balloons, Cassie hugged him and asked why he was leaving. Diego told her that it was just time to go; sometimes grown-ups knew that even when they couldn't give good reasons. When Cassie went inside, Nikki told Diego it wasn't too late to change his mind. Diego thanked her and tried to leave to go back to the tack house. Nikki asked him to stay, as the party wasn't just for family, but should include Diego since he'd been such a good friend to her son and his wife. When Diego again tried to leave, Nikki said that he was acting as if he didn't want to see Nick and Sharon. She said if that were the case, she wanted to know why.
Mac admitted to Billy that she wasn't sleeping well. Billy asked if part of the reason she wanted Amanda to move into the Chancellor mansion was because she wasn't convinced that Ralph was not a threat. Mac admitted it and said she still felt like she'd seen him. When Billy told her that he wasn't trying to upset her, Mac said she was just very tired. They then expressed to each other how glad they were to be friends again, and Billy left. He went to Crimson Lights, where he ran into Larry. Both of them admitted that the other had behaved admirably when trying to track down the man Mac thought was Ralph. Billy told him that he and Mac were friends again, but that he wasn't entirely sure Mac had given up her fear that Ralph was in Genoa City. Larry told him he was going to ask his parole officer if he could travel to Tucson to ascertain that Ralph really was there and would stay there.
While Ralph eavesdropped, Amanda showed reluctance to accept Katherine's offer to move into the Chancellor house. Katherine said that Mac would love to have her there and asked if Larry or anything else was holding her back. Amanda finally agreed to move in. Katherine went home and told Mac that Amanda would be there soon. Mac was delighted, but she felt so tired that she went upstairs to take a nap. Meanwhile, Ralph confronted Amanda about her hesitation, assuring her that if she was playing games with him, everyone from Genoa City to Kenosha was going to hear the tape he had. Amanda told him that she was not playing games, then she left to go to the shelter and pack her clothes. Esther greeted her warmly when she arrived at the Chancellor house, and Katherine called to her to come and join them for tea. Amanda walked inside to find Ralph drinking tea with Katherine.