Alex accepts that his marriage is over as Nancy tries to create order in his young son Sean's life; the News Brothers start a side business involving videotape, buxom women, and automatic weapons; Marvin discovers the origin of the chopped liver bomb; and Lou grapples with a professional athlete's wish to reveal his homosexuality during a Re-Action News Broadcast.

The News Brothers continue their side video business, which leads to the arrest of virtually every man at Re-Action News; new GM Helen Forbes makes her presence at the station known; Alex begins to get settled in his new house, thanks to the beautiful and ever-efficient nanny Aase; Ricardo heads home to Miami after receiving tragic news; and the killer of society woman Lisa Prentice may be about to reveal himself to Liz.

A man holding an abortion clinic hostage will only deal with his ""ideological mentor,"" Marvin; Helen hires image consultant Brian Clayhill, who is bent on cutting the news staff fat and updating L.A. 3's on-air look, prompting one veteran newsman to resign before the axe falls; Ricardo attempts to comfort his mother while dealing with his own grief over his brother's murder; Harry gets ""ad-libs"" from Billy, the stand-up comic; and Helen begins a heated pursuit of Marvin.

Station General Manager Helen Forbes sets her sights on bedding commentator Marvin Seaborn, but her research into his past commentaries suggests that having her way with him may be trickier than she thought. Meanwhile, Eddie comes up with the perfect location from which to cover a major downtown fire—the roof of a competing station—and Brian the consultant is still looking for ways to ""cut the fat"" at KXZX.

The Re-Action News team is called into emergency service when a earthquake hits Los Angeles, pulling Liz, Ricardo, Joe and Peggy from cocktails at Aloha Louie's; preventing Sherry from returning to Harry's bed, where she had left him handcuffed in his underwear; and forcing Tommy and Eddie into a confrontation over Eddie's intentions in regards to Tommy's estranged wife.

When Peggy crashes her car, the result of a brake job paid for but never performed, Alex sends Nancy and Sean undercover to prove that Uncle Sam's car repair is a crooked operation. Unfortunately, it's also the station's biggest client. Meanwhile, the image consultant, Brian, begins his cosmetic overhaul of the news and Eddie and Tommy try to cope with Eddie's live-in relationship with Tommy's wife.

When the overnight recovery of a Hispanic shooting victim is attributed to a shadow resembling the Virgin Mary suddenly appearing on a local garage door, a reluctant Liz is assigned to cover the story, which itself prompts many in the newsroon—especially a troubled Sherry—to examine their religious beliefs. Meanwhile, Nancy and Eddie set off to do a story in war-torn Nicaragus, accompanied by a severly out-of-place Ricardo.