Jeff Cunningham is mad that Abby is having an affair with a married man (Richard) in front of the kids. Sid hears Karen talking with Jeff, and tells her not to discuss Abby with him. Karen says that Sid is blind to Abby, but he defends her and they argue. Jeff files for custody of the kids. He and Abby talk, and he admits he wants her back. Abby sleeps with him so he'll drop the case, and then tells him that it was a one-time thing. Jeff is angry and says she's not playing 'fair' with him. One of Laura's clients kisses her, but she says she can't cheat on Richard. Abby tells Richard that it's over between them.

Abby comes on to Gary, but then says she's kidding when she sees how uncomfortable he is. Everyone thinks Laura's having an affair with Scooter, because of all their flirting. Laura tells Scooter that they can't really have an affair, because they're both married. Richard asks Laura if she'd like to discuss his affair with Abby, so that they can start over. Val's night school teacher is Earl Trent. He invites Val over to work on a story, and then asks her to sleep with him to get even with Gary and Judy. Val refuses and he starts to force her, but then breaks down weeping. Gary comes over and apologizes to Earl for having an affair with his wife.

Joe's girlfriend Lorraine comes to town, but they determine they want different things and it won't work. Abby, Gary and Val go to Sacramento to see Senator Riker, because if a bill doesn't pass to make Methanol legal, they will lose their business. He says there's nothing he can do. Abby sleeps with him, and then he decides to push the bill through. Val is mad at Abby and how she uses sex to get what she wants. Abby tells Val she could learn from her. Larry asks Karen away for the weekend, but she's not ready. Joe tells Karen she needs to stop living in the past and should take off her wedding ring. He shows home movies of the Fairgates, and everyone laughs and cries. Karen goes to the cemetery and talks to Sid. She says she will love him forever, but will now wear her ring on a chain to symbolize letting go of her fantasy that he's not really gone.

Ginger's singing in a club, so the Wards go to San Francisco. Richard invites Laura over on a pretext, but once there he tries to get her to come back. She says no and they argue. Gary hears, and goes over to stop the fight. Richard pulls a gun on him, so he leaves and calls police. Richard holds Laura at gunpoint and gets crazier and crazier, so she starts to play along with him. Meanwhile, a swat team has surrounded the house. Richard eventually lets Laura go, and puts the gun to his head, but it isn't loaded. The police bring Richard to a psychiatric hospital for observation.

Gary really wants to get Val back, and even Lilimae tries to get them back together, but Val refuses to speak to him. Karen tells Mac that she suspects Wayne caused Sid's death and she wants to trap him. Wayne and Marshall exclude Angelo from their parts of the deal. Richard decides to open a restaurant, and Laura is supportive. Gary sees Ciji Dunne, a singer, rehearsing, and is entranced. He takes the Wards to see her and Kenny is really impressed and wants to do a demo with her. Ginger is jealous.

It's opening night at Richard's restaurant ""Daniel"". Gary asks Val to go to Dallas with him for the reading of Jock's will. She says no. Abby hints around for Gary to ask her to Dallas, but he doesn't. When she finds out he asked Val to go, she is furious. Ginger is upset at all of the attention Kenny pays to Ciji while he ignores her career. Joe tells Mac that whatever Karen has planned, it's going down tonight. Karen tells Mac of her plan to catch Wayne buying illegal parts. At KLM, the parts deal is going down. Mac has an informer tell Angelo, who walks in on the deal and is going to kill Wayne and Marshall. Then Mac and the police burst in and let Angelo go. Wayne and Marshall know that Angelo will have them murdered, so they agree to sign confessions about killing Sid. Wayne tells Karen he didn't mean to kill him, they were just trying to scare Sid.

Ciji's body is found, and Gary is passed out on the beach about 200 feet away. Gary goes home, where Abby keeps questioning him about whether he did it, and Gary can't remember. When it comes out that Ciji was pregnant, Gary doesn't think the baby was his, but can't be sure. Chip tells Diana he's going to New York alone, and will send for her when he's settled. Laura's really upset and takes it out on Richard. An old girlfriend of Mac's, Janet Baines, is handling Ciji's case. Mac requests an autopsy, and they think Ciji was murdered. Janet questions all of the neighbors. Abby hires Mitchell Casey, a criminal lawyer. Mitch doesn't want Gary to go to the police, but Gary does, and tells them that he initially lied to them, and that he woke up on the beach near Ciji. Gary is charged with Ciji's murder.

Val is booked and questioned. Abby goes to jail and has Gary sign over power of atty. to her. When she finds out Val confessed, Abby laughs and says, ""That's so Val."" Abby wants Mitch to get Val's confession thrown out. Mitch tells Abby she'd better determine what is more important - keeping Val and Gary apart, or getting Gary out of Jail. Police bring Val to Ciji's to recreate the fight. Other police show up with Gary. Gary's really upset, and says Val has nothing to do with it. Police have to restrain them. Lilimae tells Chip it was his leaking Val's story that started this whole mess, and kicks him out. Chip tries to charm Lilimae, but she's no longer buying it. Police release Val. Richard has decided to leave Laura, but doesn't tell her. He liquidates his assets and takes care of unfinished business, packs and secretly leaves.

Val tells Lilimae she's pregnant, and Lilimae inadvertently tells Ben. Val admits to him that the baby is Gary's, and Ben's upset. Cathy and Gary kiss, but Gary says he won't cheat on Abby. Mac tells Greg he has evidence on Wolfbridge. Mac's office and the McKenzie home is ransacked. Laura offers money to the Marcus's, to buy their property on Lotus Point, but they won't sell. Mark St. Claire goes to see Abby and says that he represents Wolfbridge, and they will be her partners in Lotus Point. Abby refuses, and Mark says she has no choice. If she doesn't cooperate, they will have her variance revoked. Karen ransacks Val's bathroom looking for pills, and is so out of it, she doesn't even notice her house has been trashed. Karen calls the Doctor and gets a refill. Mac finds Karen passed out in the shower with the empty bottle of pills beside her.

Ben proposes to Val and says he'll raise the baby as his own. She accepts.Cathy tells Gary that she killed a man in self defense (but she really took the blame for a murder that Ray committed). She says Abby hired her to divert him from her business dealings, but she fell in love with him. Laura tells the MacKenzies about Apaloon and Mark St. Claire. Mack barges into Abby's office, but she denies knowing anything. She tells Westmont if Gary finds out and sues her she would win. She can claim he's mentally unstable because he's been trying to re-create Ciji, a dead girl. Greg gives a press conference saying Abby got the variance and re-instates Mac. Gary confronts Abby, who feigns innocence. He loses it and starts trashing the room and screams at her to get out of his life. Abby runs to Greg's, only to find him in bed with Laura. Abby tries to talk to Gary, but he tells her to contact him through his lawyer.

Police follow St. Claire's Limousine, but lose them. St. Claire has Abby on a yacht. St. Claire calls for Greg and Laura answers. She tells both Greg and Mac that he called. Cathy comes back to Knots Landing, and Laura invites her to stay with them again. Val admits to Ben she still loves Gary. Karen has surgery. The bullet entered her ribs and shattered. The doctor says there was one fragment lodged in her spine that he couldn't remove. He tells her that at some point, the fragment will shift and she will become paralyzed, and she will die soon after this.

Greg tells the police that he shot St. Claire because he had a gun and was about to shoot Abby. Abby concurs. Greg asks Abby to make a public statement on his behalf. Gary buys the cable station Ben works at. Gary takes Abby back, but says he's taking control of the business, and it will now be run honestly and fairly. He says he had Lotus Point redesigned to fit into the environment and that Karen will be an equal partner. Gary tells Cathy he loves Abby, but hopes they can remain friends. Val figures out that Lilimae is Joshua's mother. Lilimae tells her that she was never married to Joshua's father Jonathan. She stayed with him for a year after Joshua was born and tried to be a good mother. She doesn't know how to tell Joshua that she is his mother.

Greg keeps trying to call Laura, who hangs up on him. He follows her and explains that it was a stunt Ruth set up, so he kicked her out. Greg asks Laura to marry him, but she says she's already married. The police question Karen about Ackerman, while Mac goes to his office and finds Val's file. He sets the alarm off, and is arrested. After Mac is out, they find a list in the file that has the name couples who illegally adopted babies, but there are no addresses on the list. One name on the list - Harry Fisher - rings a bell. The next day at work Karen tells Gary the babies are alive. Mac remembers that he and Ben were at the Fisher's house, and they had twins. Mac calls Karen and tells her to meet him there. Gary goes with her. Harry Fisher rushes home and tells his wife Sheila to pack, that they have to leave on a vacation now. Sheila says she won't leave because she hasn't picked up the prescription for the twin's ear infections. Frustrated, Harry takes one of the twins and goes to p

Linda goes to the police and says she thinks her boyfriend Kenny murdered Joshua. Lilimae wants to move back in with Val, but Val isn't sure, as she's always so mean to Ben. Ben teasingly says ""If she gets out of line, I'll rap her up side the head!"" Gary ignores Abby and stays at Lotus Point. Greg gives a press conference saying that Gary blew up Empire Valley because of structural damages. Greg speaks to a portrait of Galveston about how he let him reach back from the grave and manipulate him. Greg says that Coblentz gained control because he was weak, and not mean, hard or cruel enough to hold them off, because he was not a barbarian like his father. He says, ""Congratulations, you've hatched a new breed of barbarian,"" and he then vows to go even further than Galveston in creating his own empire, and will let nobody and nothing stand in his way.