Phyllis got a surprise visit from Michael Baldwin in her jail cell. He asked why John Silva was still representing her, especially since her philandering husband hired him. He suggested he should be the one representing her, and after a brief and manipulative conversation, he figured out the act Phyllis and Jack were putting on. She tried to deny it, but once he threw in her face that her husband was likely about to sleep with Diane, she admitted it. She told him about the videotape, and he asked how possibly Jack planned to get that information out of Diane. He also said if Diane did, in fact, set her up, she deserved to go down-or at least "get a roll in the hay with the man of her dreams." She snapped on him for being so cruel as to bring that up, and when she jumped at him, the guard came to escort Michael out. Before leaving, he warned her that when people play games, the other team can score, too. After he left, she looked totally crestfallen, thinking about what he said.
In Diane's suite, Michael's prediction was proving itself correct. A very amorous Diane tried her best to get Jack in bed-proposing toasts, and admitting to him that she has never stopped loving him. She told him to wait a minute, while she went into the bedroom to change into something more sexy. While she was gone, Jack nearly gagged, but quickly straightened up when she reappeared in a sexy black nightie, leg brace and all. No way out, he follows her into the bedroom, and when she begged him to make love to her, he progressed to the bed. When he realized she was wearing the leg brace, he tried to halt the situation, saying he didn't want to hurt her. She responded by ripping it off and throwing it off the bed, and resuming doing what she wanted to do.
Neil called Walnut Grove and set up an appointment with one of Lily's teachers to discuss the situation. Wes jumped in, politely telling Neil he needed to slow down, as he is really the only father figure Lily has known in a number of years. He suggested perhaps Neil should work his way up to a disciplinary role. This infuriated Neil, and he reminded both Wes and Dru the very reason they were there was because Dru was having trouble with Lily. He asked Wes if he could be alone with Dru to talk, and he obliged. After Wes left, Neil launched into a lecture to Dru that Lily was screwed up because he wasn't around, and she was galavanting all about Europe while she was growing up. He went on to say she didn't have any sense of family or home. His solution to the issue was suggesting he, Dru and Lily all live together under the same roof. She looked at him like he was crazy, but admitted that having both parents around her would likely be a good idea. After making clear she had no interest in getting involved with Neil, she left to go discuss it with Wes.
When Dru told Wes what Neil suggested, he started laughing. He asked Dru if she saw what Neil was trying to do-implying he was trying to re-form their family-and she told him he was way off base. He told her he thought Lily living with two parents was a great idea, and he loved her enough to have that happen, and he shocked her by proposing on the spot. At first, she asked him if he was joking, and when she realized he wasn't, she was dumbfounded.
Nikki continued to question Victor about what happened between him and Victoria, and finally he told her about the slap. After audibly gasping, she asked what in the world would make her so angry that would make her lose control like that. After hearing the story, she was absolutely incredulous and gave it to Victor with both barrels. She emphasized that Victoria was in love with Diego, and after talking with him, she believed his feelings for her were sincere, as well. Victor tried to rationalize that he was only trying to protect her, but she wasn't giving him a chance. She told him their family was falling apart and what he has done has just made it much, much worse. She felt what he had done was going to cause permanent and irreversible damage to his relationship with Victoria.
Back in the motel room, Victoria was moping around and pacing about the room. She placed another call to Mrs. Gutierrez, who seemed a little annoyed at hearing from her again. As she began to suspect something was wrong, Victoria ended the call. She walked over the closet and found a flannel shirt of Diego's. She inhaled its smell, and then put it on. Just then, there was a knock on the door; it was Raul, checking in. When she told him she had just talked to his mother, he told her they were going to become suspicious if she kept on calling. He reminded her how intimidating Victor could be, and told her it was time to start thinking about he possibility that Diego had left with the money. She insisted he wouldn't do that, and that he was coming home-tonight. Getting hysterical, she cried in Raul's arms.
At the hospital, a police officer asked the doctor what Diego's chances were. The doctor said he couldn't say, and hoped his family would show up soon.
In the morning, Jack woke up before Diane, who was lying on his chest. When he looked down at her, he looked absolutely mortified and disgusted. After Diane woke up, he looked at her brace and picked it up when she wasn't looking. She asked him if he wanted to pick up Kyle and go get some breakfast, and he responded by asking if he didn't want to put her cast back on. She said she would later on, and with that, he "playfully" pulled her off of the bed, trying to see if he could make her skip. He went into the living room and turned on some music, saying he thought it would be nice to dance. Falling for it, Diane was game, and giggled like a schoolgirl when he whirled her all around the suite. When he face was away from hers, he totally scowled. After the dance, he called his secretary and when she told him his morning was completely clear, he replied aloud, responding like he was almost late for a meeting. He told a disappointed Diane he had to leave, post haste.
Meanwhile, Phyllis's alter ego paid her a visit, and they had a very contentious conversation. Her alter ego chided her mercilessly about letting Jack sleep with Diane, that it was a bad decision any which way you looked at it. She pointed out that Diane was a beautiful woman, and did she really think Jack wouldn't feel anything at all whilst in bed with her? Making it worse, she blasted Phyllis for not having a Plan B. This, of course, made Phyllis go completely crazy.
Later on after she had calmed down, Jack arrived, looking manic and desperate. He told her he thought he did it, he had come across evidence that would surely save her. He asked Phyllis how long it would take a broken leg to heal, but Phyllis was not listening. She was only interested in hearing one thing---if Jack slept with Diane. He tried to dodge the question to spare her feelings, but when she asked him point-blank, he admitted that he did what he had to do. Her response was running over to the commode and throwing up rather violently. Jack was devastated having to hurt her and told her he really loved her and he felt that it really paid off. She was silent, and just looked at him maniacally.
As Neil was getting ready to leave, Wes showed up at his door, wanting to talk about what happened the previous night. He told Neil he applauded the idea of having two parents under one roof for Lily, but implied there was another reason Neil wanted it to happen. Neil commented that he didn't see Wes making any commitment to Drucilla, and when Wes dropped the proposal bomb on him, he looked angry. He snidely asked if she had said yes, and with equal attitude, Wes told him she hadn't said no.
Down in Olivia's apartment Dru was yelling at her agent Sid to get her some work when Aunt Mamie arrived. After talking about Lily and her school situation for a minute, they began to have a heart-to-heart about the two men in Dru's life. She told her aunt she was "tickled pink" about Wes's proposal, but was a bit concerned that he did it out of jealousy. When she told Mamie about Neil's proposition, Mamie pooh-poohed the idea, saying what Dru needed in her life was love, not to live in her ex-husband's house in separate bedrooms. She just sighed and said she was trying to find a happy medium. Mamie looked at her and said that actually, what she needed to do is make a choice.
Neil went to meet with Victor at Newman Enterprises to see if he could get hired back. Victor gave him the expected lecture, telling him what a mass confusion he created when he left, and telling him how he really let him down. Neil told him he understood his reservations, but nonetheless had created a proposal, outlining new responsibilities. After listening to a very convincing sell job by Neil, Victor agreed to re-hire him, but said his employment would be on a probationary period. Neil agreed, saying if he slipped, he knew he would be out. Victor shook his hand and said, "Welcome aboard."
Vicki, still distraught about the missing Diego, went to Crimson Lights and asked Cody if he had seen him. Soon after, Nick arrived, who commented that it looked like she needed some sleep. She told him yes she did, because of his father. He told he she should have known the fallout that would happen if she was with Diego, and when he started putting him down, she just snapped. She told him Diego had left, and she's sure he's probably happy about it. After thinking about it, he said it really didn't make sense that Diego had left, and when Vicki told him about the $100,000, he told her he was sorry that happened. Being honest, he told her yes, he was glad Diego was gone, but he never wanted to see her get hurt in the whole mess.
Moving on to the ranch, Vicki went to go see her mother for comfort. She explained Diego had left and took all of his clothes, and Nikki listened sympathetically. She asked Vicki to move back in, but she declined because of Victor. Besides, she said, she wanted to hang around the motel room until she had solid proof that Diego had walked out on her. Nikki looked thoughtful, and asked Vicki if there was something they hadn't yet considered. She asked if it was possible that Diego had been in an accident and couldn't reach her.
Cody and Andy were talking in Crimson Lights. Andy explained that he had worked with Paul many years before and still had his detective license. While they were talking, Diane came in. When Cody saw Andy watching her, he said he wasn't sure who she was, although he'd often seen her around. Andy said he didn't need an introduction; she used to be his wife. He then joined Diane at her table. She was surprised and happy to see him. She told him everything that had been going on with her, but she was sure things were going to be perfect now. Jack loved her. Andy reminded her that Jack had broken up their marriage and broken her heart, and was still married himself. Andy thought it was strange that the reason Kyle wasn't home the night of the fire was because he was at the wedding with Jack and Phyllis. Why had Diane allowed that, with all of her suspicions about Phyllis's stability? Diane said it just showed how determined she was to make sure Kyle had a good relationship with his father. In any case, Phyllis was going to be in prison for a long time. Andy was still skeptical and told Diane if she needed a friend to talk to, she could call him.
Phyllis was devastated by the news that Jack and Diane had sex, although she admitted that it was her idea. But when Jack told her the information it had gotten him, that Diane had obviously not needed her cast or cane for a long time, she argued that John Silva wouldn't see it that way. He had already told them that proving Phyllis's innocence by shifting the blame to someone else wasn't the way to go. Jack begged her to work with him, to help him find some way to use the information. Not only was Diane perfectly able to move around without the cast, but her leg was in great shape, whereas it would be thin from lack of use if she hadn't been able to walk for as long as she'd pretended. Phyllis finally seemed to see a glimmer of hope. She told him to try to get information from Diane's doctor, but cautioned him not to let Diane know he suspected anything.
Nick went to see Victor after finding out from Victoria that their father had given Diego a hundred thousand dollars to leave town. He said that no matter how much he personally hated Diego, Victor was wrong to interfere. Victoria's mistakes were hers to make. Victor may have succeeded in getting rid of Diego, but he had lost his daughter in the process. Victor told him that when his children were grown, Nick would better understand his need to protect his children. He told Nick to stop running away from his responsibilities and go home to his wife and children. Nick left in disgust, and Victor called Victoria's number and left a message. He said he knew that she was angry with him. He wanted the two of them to talk, and he loved her.
Nikki tried to discourage Victoria from believing that Diego had been involved in an accident. But Victoria insisted that it was the only explanation that made sense. She was sure Diego wouldn't have taken Victor's money and left town. She called the police, but they had no information on any accident involving someone with Diego's name. She then ran out of the house to start checking the hospitals.
Sharon was upset when Cassie accused her of being the reason Nick had left. Before Sharon could talk to her, Cassie ran out of the house. Sharon went to see Nikki, accusing her of telling Cassie things about her and Diego. Nikki was furious and said she had told Cassie nothing. In fact, she suspected it was Sharon's own guilt that had given her away. As she lashed out at Sharon once again for destroying their family, Sharon asked what else she could do. She'd apologized over and over. Nikki's reactions made her suspect that something else had happened. Nikki told her about Victor's payment of money to get Diego out of town. Sharon wondered how that was her fault, and Nikki said everything that was tearing the Newmans apart was Sharon's fault because she couldn't show enough restraint to stay away from Diego.
After Sharon went home, Victor came over. He was concerned to hear about how Cassie was behaving. He told Sharon that he'd told Nick to come home and put his family back together. Sharon thanked him for being the only one who was supporting her. She then apologized for causing a rift between Victor and Victoria. Victor told her that wasn't her fault. It had been his decision alone to protect his daughter. Sharon agreed that it would have been better if Diego had just left town when she originally wanted him to. She commiserated with Victor's actions, saying that when Victoria had children of her own, she'd understand her father better. Victor said he couldn't believe that Nick didn't realize what a wonderful person Sharon was. The two of them hugged, then Victor left.
At the hospital, there were no records of Diego being admitted. Victoria called her mother from a pay phone and said she was going to try other hospitals until she found him. A nurse overheard her and stopped Victoria before she could leave. She asked her how long her boyfriend had been missing. When Victoria told her, she asked if he had any distinguishing features. Victoria told her about Diego's tattoo. The nurse then took her upstairs, where Diego was lying in a coma. The doctor told her they suspected Diego had been a mugging victim. They'd performed surgery to relieve the pressure in his head, but there was nothing more they could do until Diego regained consciousness. Victoria told the doctor that she would call Diego's family, but first she wanted to be alone with him. As she sat by his bed, weeping, she told him that she'd never thought she would love anyone again after losing Ryan. He had to be strong for her, because she couldn't go through that again. She knew he was tired of all the obstacles in their way, but they'd get through them together. They still had so many things to do together. She was thrilled when Diego opened his eyes and said, "Hey, baby." She held him, her head against his chest.