Johnny delivers packages for the shady business man, and a woman accidentally sees them. Michael won't take Jody back, and when he sees a woman jump off a cliff to her death at the beach, he thinks it's Jody, but it's actually the woman who walked in on Jody. At a gallery opening, Greg asks Paige to introduce him to a woman who catches his eye. Paige is jealous and gets drunk. She goes to see Johnny and they sleep together. Frank is super paranoid, and Pat is worried that his paranoia is what will call attention to them. Karen is called to give a deposition in the twins' custody case. She tries to get Val and Gary to work it out. Val asks Karen to lie and say the twins aren't Gary's, and Karen doesn't know what to do.

Karen tells Abby and Gary that Michael and Paige are being held hostage, so they clear the marina. Mac goes to Mexico. He is beaten up by Manny's men and tied up in a room with Chavas. Manny and Harold have Mac call Karen to let them unload the drugs with no interference. Manny has Harold guard Mack. Mack tells him Manny uses him because he's stupid. Chavas frees himself and a ruckus ensues. Chavas is shot. Manny is going to shoot Mack, but Harold implores him not to. Manny ignores him, so Harold shoots Manny. Frank finds Val and she is rushed to the hospital. Gary keeps vigil and calls Jill and tells her Val will be okay. Jill is extremely upset. She comes home and goes to the hospital. Val is in the psycho ward, and her nutty roommate screams at Jill, ""I know what I know!"" Jill tries to damage Val's IV tube, but the roommate stops her.

Greg sleeps with Paige. Abby hires Ted Melcher change Lotus Point's bad image. Tyler sends his video tape to the Williams to blackmail them. He goes to Pat's bank and demands a cashier's check for $100,000. Mac follows him and discovers that he is an actor, and is working alone. Posing as a director, Mack calls Tyler to read for him. The ""script"" is a blackmail confession, and Mack tapes it. Mack demands Tyler give back the money. Tyler admits he worked at the hospital where Pat was a doctor, and knew she went into hiding. Then he saw her recently in a mall. Mack tells him to move back east, or he will give the tape of the confession to the police.

Greg is livid when the paper has an article about Meg. Greg gives a press conference saying he gave Meg to the McKenzies when Laura died, and it would be traumatic to remove her from the only family she's ever known. Abby and Ted are furious. Jill continues breaking into the ranch, so Gary bursts into her office and screams to get out of his life. The Police later serve Gary with a restraining order. Jill runs into the twins at the library, and when Val finds out she barges into Jill's office and trashes it. Val screams at Jill to stay away from her and grabs a scissors. Scared Val will stab her, she runs from the office. Hearing Jill saw the twins, Gary rushes to Jill's apartment. Val goes to Jill's and tries to calm Gary down. They walk over to a park to talk. Driving home, Gary is pulled over by the police. They open his trunk. Jill is in the trunk - bound, gagged, and dead.

Greg owns Paige's apartment building, and tells the manager to let her live there rent free, but not to tell her he arranged it. Abby gives a press conference saying she bought Lotus Point in order to stop the oil drilling, and she is donating it to the government as a wildlife preserve. Olivia moves into Harold's, so Abby takes back her car and all her credit cards. Paige tries to find the post office box that Rick's key is to.Ted goes up to Paige in her parking garage and says that Greg and Abby are trying to kill him. A car tries to run him down, but misses. Karen and Mac decide to get away to the mountains, and Karen invites Paula to ride along.The Secretary of State announces that Abby is to be the new trade representative to Japan. Greg's angry tells her he had Morikame's oil permits denied. Abby asks Karen to keep an eye on Olivia. Then Abby and Brian pack and drive off, singing ""Don't Worry, be Happy.""

Not knowing whether to trust Greg or Ted, Paige finally chooses Ted and has him bring her home. He wants her to give him the key, but she gives him a fake one. She finds out Rick had a cabin in Spring Lake, so she drives up there. The post office is closed, so she gets a hotel room. Ted also drives up to Spring Lake and waits in a bar for the post office to open. Greg shows up with a big goon, and demands Ted give him the key. Val doesn't believe Danny is sick when he cancels a date with her, so she brings him chicken soup. She's relieved to find out he really is sick. Gary continues to talk to Sally's friend. They agree to meet. While on the phone, Gary hears a man come in and Sally's friend yelling at him to leave, and then screaming ""NO!"" and a lot of noises. Then the phone goes dead.

Gary goes to Val's and asks Danny for Amanda's number. Danny says Amanda is his wife, which upsets Val. Danny says they've been separated for 9 months. Val tells him she wants nothing more to do with him. Amanda goes to see Gary. Paige won't go out with Greg, and he's really frustrated. Ginny takes the twins to see her friend Jeri at her office at Oakman Industries. While there, Jeri steals $17,000, and Ginny is arrested as an accessory. Oakman's attorney, Mark Baylor tells Mac they won't prosecute Jeri if she returns the money. Jeri refuses because they dissolved her pension, and says she'll only return the money if all pensions are restored. Mac thinks it's fishy that Oakman doesn't want to prosecute. Then Jeri is found splattered on the sidewalk below her apartment window.

Julie shoots Danny but misses. Frank hears and talks her out of it by telling her not to become like Danny. Pat is taken off life support and dies as Frank sings to her. Michael and Linda sleep together, and he tells Karen that he is going to marry Linda. Val tells Danny she wants to get back together and will run away with him. He agrees and drives off in Val's car. He's pulled over and police tell him the car was reported stolen, and they arrest him. Val and Gary, watching from a distance, hug. Anne faxes a fake marriage certificate to the accountant, and sets it up to be wired to her own account she set up in Paige's name. Tom and Paige get ready for their wedding ceremony. Greg tells Tom that he set him up, and will only clear him if he leaves the country. Paige is crushed when its discovered that Tom is gone. Gary proposes to Val. Mac and the police find evidence that proves that Dianne has been terrorizing Karen. Dianne goes crazy, and is taken to a psych ward, where they find LS

Claudia has Anne checked out and finds out she's broke. Anne decides to seduce Greg, but he never comes home. Tom stops by Greg's and sees Anne's clothes strewn about, and he assumes that they are Paige's clothes. Danny beats Gary up with a bat. Then he ties Gary up and forces him to drink alcohol. When Gary's nearly passed out, he puts him in a running car that goes off a cliff. Meanwhile, Danny's girlfriend, Kim, goes to see Val, and she kicks Danny out. Val waits up all night for Gary. She calls the police, knowing that Danny has done something to him. Val, Mac and the police find Gary's empty car. Danny is floating in a pool. Dead.

The police soon realize that everyone had a motive for killing Danny, but Frank is the only one without an alibi. Karen is depressed over her attack and is afraid to leave the house. Val and Gary ask Mac and Karen to be in their wedding. Paige doesn't go to work and tries to get a new job, but isn't offered any. Linda uses Paige's absence to try to ingratiate herself to Greg. Linda's upset when she hears Greg call Paige and offer her a big promotion and raise. Kate and Greg have a nice talk, and she tells him he and Claudia are exactly alike. Anne calls her ex-lover, Marco Conti, who is rich and married, and tells him they're being blackmailed. It's actually Anne who's doing the blackmailing. Marco says he'll take care of it, and sends Nick Schillace to Knots Landing.

Mac and Karen go to court and ask to be Jason's foster parents, but the judge decides he should stay with his dad. Mac speeds off with Jason. He hides him in Val's house, but refuses to tell anyone where he is, so he's arrested. Frank and Charlotte go on a date. The doctor tells Gary that Val isn't responding to medication, but might get better on her own. Mrs. Richfield's niece Susie is hired at Sumner Group and does a terrible job. Susie puts through an account Linda was secretly trying to get to Paige, who then takes over the account. Steve asks Kate a lot of questions about her father and Claudia. He accidentally dings Paige's car, and Paige is furious with him and demands he fix it. Steve has a parole officer who says he needs to get a job and stay out of trouble, or he'll put him back in prison.

Pierce is interested in Tidal Energy, and meets with Gary and Joseph. Greg finds out Paige showed Gary's proposal to Pierce, and fires her. She decides to work at Tidal Energy too.Greg meets with Joseph about funding him, but he says he won't sell Gary out. Joseph asks Kate to lunch. Paige is embarrased by Anne's nude layout.Val tells Lynette she will teach her to read. On ""Open Mike"" Karen's viewers laud her as a vigilante hero. Upset, she says she isn't a hero - she met violence with violence, and someone died. Linda tells Brian's wife where he is for $50,000. Brian follows her and surprises her at her condo. He's furious and tells Linda she spoiled everything. He stabs her and cuts her throat.

Greg decides to pay off Mary, but she says it's not about money. The MacKenzies are mad that she told Meg about the adoption. Claudia gets Vanessa a job at a music television station, and Alex tries to get back with Kate, and then comes on to Paige. Alex decides to go back east. Greg is appointed to a task force to rebuild Los Angeles after the riots. He tells Paige he wants her and Sumner Group to be part of it. Gary is frustrated that he didn't find anything out about Val in Florida. Kate helps to comfort the twins, who are worried. Kate decides to stay at Claudia's for awhile. Nick comes back to town. Anne finds out that she isn't pregnant, but is going through menopause.

Greg ignores Anne, so she comes on to Nick but won't sleep with him. Greg tells Anne his heart wants what it wants, and it doesn't want her. Gary tells Kate he has conflicting feelings, but wants to still be friends with her. Mac calls Karen but she puts Meg on. He and Greg commiserate in a bar, and Mac says he'll give Greg Meg's shares back. Paige asks him for the shares, and Mac says he already promised them to Greg, but will give them to her instead. Greg blackmails Claudia to sell him her shares. Treadwell calls Nick and Nick tells Claudia she can't sell, that because he gave her the half million dollars, she has obligations, and she doesn't know who she's dealing with. He also wants her to put a disc in the Sumner computer. Out bicycling with the twins, a van knocks Kate off the road, and she's unconscious.

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Treadwell is going to shoot Nick, so Vanessa shoots Treadwell. She tells Tom it was in self-defense, so no charges are filed. With Treadwell out of the way, Val is free, and she and the twins have a tearful reunion. Gary tells her about Kate, but says he never loved anyone the way he loved her. Kate's upset and decides to go away. Karen and Mac yell at each other, and suddenly realize that things are back to ""normal"" and start to laugh and cry and kiss. Abby tells Greg that she is Treadwell's partner, and is taking over Sumner Group, because she has information to blackmail him. Greg has bought information from Nick and Anne that document her and Treadwell's illegal dealings, so she can't blackmail him. With the money they made from Greg, Nick and Anne decide to live in Monaco together. At the airport they run into Claudia, who is also moving to Monaco. Greg finds that Paige has taken over his office, and she reminds him she owns 23 of the company, but he can have her old office. He sa