Michael saves a girl - Jody - from drowning, and is embarrassed when he makes her out to be a hero. Greg hires a nanny, stressing it's only until Laura returns. Lilimae warms to Al, and he asks her out. She's shocked that he lives in his car, and they have dinner by the side of the road. Romance begins to bud. Olivia still grieves Peter, so Abby tells her about her first love, Charles. Gary is hurt when Val doesn't invite him to the twins first birthday party. He tells Val he wants to be in their life, but she says no. Gary implores Lilimae's help. Val tells Lilimae that Gary is unreliable, and how many fathers can the twins lose? Val finally relents and brings the twins to the ranch to see Gary. Jill doesn't like this. Karen meets with some men to arrange a convention for them at Lotus Point. She's shocked when she meets their boss. It's Abby's old boyfriend Charles.

Eric visits and has a surprise - he's married! Karen doesn't like his wife Linda. She also doesn't like Michael's new girlfriend Jody. Val invites Gary to dinner, and after the twins are asleep they kiss passionately, but he leaves. Abby meets Charles for lunch and asks him if leaving her was the worst mistake he made in his life. He says he's the most miserable man in the world. Flashback Scenes: Young Abby meets Charles when Sid fixes his car. He asks her out, but is angry that she won't sleep with him. She eventually gives up her virginity to him, and tells Karen she is going to marry him. Later, Karen shows her the Society Page, which has an announcement of Charles marrying someone else. Charles explains to Abby that Judith will be a more appropriate wife for him, and they'll all be happier in the long run, but he'd like Abby to continue to be his mistress. Abby leaves him, but is devastated.

Karen plans a reception for Linda and Eric, but doesn't warm to her. Michael is irritated at Jody's neediness and insecurities. Al proposes to Lilimae, who says she can't leave Val. Finally, Lilimae tells Al she won't marry him, but will live with him. They buy a motorhome and leave Knots Landing. Gary spends lots of time with Val and the twins. They laugh about how everyone thinks they're having an affair. Abby tells Jill that Gary and Val are using the twins as an excuse to see one another, and that Jill no longer excites Gary because the cheating excites him, not the woman. Abby waits at a restaurant for Charles, but then his secretary calls and says he's overseas. She remembers trashing her room after she left Charles, and vowing that she would never let a man hurt her again. Greg misses Laura terribly, and tells Meg about all the things they'll do together when she's back. Then he gets a call from the clinic that Laura is dead.

Greg hires Paige to buy him investment art. Charles tells Abby that marrying Judith is a mistake he's lived with for 20 years. She screams that she hates him, but he kisses her and they sleep together. Gary and Val make love. She feels guilty about Jill, and rejects Gary after he helps her and the twins decorate the tree. Val tells Gary it was a mistake and she doesn't want him coming over anymore. He storms out. Gary tells Jill that he doesn't love her, but wishes he did. Jill confronts Val, and tells her that she could give Abby lessons in manipulation. Jill moves out of Gary's but then returns. Greg drops Meg off at the MacKenzies, saying he has business in New York.

Greg grieves for Laura. Paige is suprised to find Greg at home, but he tells her he's still in New York. He calls the MacKenzies and says he's been delayed and will be gone longer. Abby and Charles have a romantic day at an amusement park and horseback riding, but then Judith calls and Charles says he has to leave. Instead, Charles comes back and tells Abby he can't leave her and make the same mistake twice. Johnny Rourke, an ""Irishman"", tells a woman on an airplane that he is flying to see his girlfriend Paige Matheson. He steals the woman's credit cards, and later buys a gun in a bar. Val tells Gary about Jill's visit, and that they should just remain ex's. Gary's angry with Jill, but Jill says she told Val he's a free man, so Val must not want him. New Neighbors, Frank and Pat Williams, move into Laura's house with their daughter Julie.

Johnny wants to blackmail Paige for helping her with her fake death, but she tells him everyone already knows. Mack invites Johnny to stay with them, much to Paige's chagrin. While Karen is out of town, Meg gets really sick. Pat comes to the rescue and tells the hospital what's wrong in medical terminology. Mack asks if she's a nurse, but she says no, the same thing happened to Julie. Paige tells Greg about what happened, and he and Mack stay with Meg at the hospital. Greg sings to her. Karen rushes back, and Greg and the McKenzies realize what a bond Mac and Karen have to Meg. Meg is okay. Judith comes to town, and Abby is upset that Charles jumps at her every command. Judith tells Abby he will never leave her, and Charles packs to go home with Judith. Abby is really angry. At the last minute, Charles decides not to go home, and asks Abby to marry him.

The MacKenzie's miss Meg when Greg takes her home. Later, Greg asks them to watch her again. Johnny cons his way into staying at Lotus Point, and spies on another guest. He steals money from this man, then tells him, and gives it back. The man say's he'll get Johnny a job. Charles brings Abby to meet his friends, and Judith shows up. She is very snide to Abby, so Charles tells Judith he has asked Abby to marry him.Val and the twins decorate the house for Gary's birthday, but Jill has planned a surprise party for him, so Gary doesn't get to Val's until the twins are asleep. Val's furious, and yells that he has no sense of responsibility. Their argument wakes the twins, and they call Gary ""Daddy."" Jill's upset that Gary didn't come home with her. Gary tries to make up with her, but she tells him he has to make a choice. Later, she apologizes and says that he doesn't have to abide by Val's terms. She reminds him she is a lawyer, and says she will help him.

Judith and Charles don't want to divorce until a merger goes through, so Abby enlists Greg's help to mess it up. Judith secretly tapes Abby, and tells Charles that Abby used inside information. Charles says he doesn't care - he loves Abby. Michael fends off Jody's advances and tells her he doesn't love her. She's very upset. The MacKenzies have the Williams over for dinner, and Frank acts strange. Mack is sure Frank is a cop. It's too late for Gary to appeal for paternal rights to the twins, so Jill draws up an official sounding letter for Val to sign, naming Gary as the twins' father. Val's upset and decides to get her own attorney. When Gary comes to visit, Val goes off, screaming that he is not the twins' dad, and to never come back.

Paige continues to be jealous of Greg's interest in other women and sleeps with Johnny. The MacKenzies are suspicious of the Williams' and speculate that Frank and Pat don't have custody of Julie. They see a woman come and pick Pat up in the middle of the night. Karen and Mack tell the truth in their depositions, and convince Val to tell the truth, that Gary wants visitation, not custody. Charles suggests to Abby she expands the marina at Lotus Point. He loans her the money, not telling her he is the front for investors. Charles gives her plans he had drawn up, but Abby finds they were made before he came back into her life. She hires a detective to investigate him. Charles' divorce is final, so Abby wants to get married ASAP.

Pat returns from testifying. Frank is upset because if Pat hadn't agreed to testify, they wouldn't be in the Witness Protection Program. The MacKenzies wonder if Greg is ever going to pick up Meg. Val tells Gary he won't get custody of the twins. Abby tells Charles that Lotus Point can't afford to expand the marina. Charles says it will be her wedding gift, and gives her a check for $2 million. Abby and Charles get married in Lake Tahoe. The next day, Abby has her attorney annul the marriage, and tells Charles she knows he only wanted Lotus Point. He admits he did, but then fell in love with her. Charles wants his money back, but Abby has already cleared the check. His investors tell him to just let her have it to avoid publicity. Charles goes back east. Abby is really upset, and Olivia gives Abby her wedding gift - a star she had named after them.