Alison turns to a psychiatrist for help coping with her nightmares, but Jo warns that she seems to be developing romantic feelings for the man. Amanda resolves Jane's financial dilemma by making Michael her business partner. Jane asks her accountant to falsify the design firm's financial records to keep Michael and Syd from cutting into her profits. Sydney takes over Lauren's operation after the madam is arrested. Amanda hires a young man named Ted Ryan as building manager. She fires him when he continually exhibits strange behavior, but he lurks around the building and watches Amanda in the shower.

Alison clashes with a man in her group meeting, NFL quarterback Terry Parsons. When Billy fails to show for a meeting featuring loved ones, Alison sneaks out to a bar and gets hammered. Terry helps her get sober and explains his earlier behavior. Billy is outraged when he learns that Susan failed to tell him about Alison's meeting. He lights into her, prompting Susan to move out. Peter displays increasingly controlling behavior toward Amanda. Jane sends a note and flowers from Michael back to the beach house, and Kimberly threatens to divorce him. The baby becomes very ill and is raced to the hospital. Michael refuses to return the child to Jo, even after a blood test proves she is the mother. Jeffrey is livid when Matt reveals his HIV positive status to the neighbors (to explain Jeffrey's panic over a bleeding cut). Jake breaks up with Sydney after learning that she slept with Chris.