Lorelai and Rory have a major falling out after Rory goes against her mother's wishes and asks her grandparents to lend Lorelai the money she needs to repair termite damage to their house; Lane's desire to become a cheerleader causes a strain in her relationship with Rory; after an exhaustive and unproductive attempt to raise the funds she needs based on her own credit rating, Lorelai is forced to ask Emily to cosign a loan; Rory drives Paris crazy when she refuses to reveal her PSAT scores.

Richard visits Stars Hollow, and drives Lorelai and Rory crazy by passing judgment on every aspect of their lives.

The annual Stars Hollow charity picnic basket lunch auction sparks controversies among couples throughout town; Jess outbids Dean for Rory's basket, causing Dean and Rory to quarrel when Rory abides by tradition and shares the lunch with Jess; Jackson refuses to bid on Sookie's basket after she leads him to believe that she doesn't want to move in together; Luke comes to Lorelai's rescue, bids on her basket, and feeds them both at the diner after Miss Patty sets Lorelai up with a trio of unsuitable bidders; Henry tires of the end runs around Mrs. Kim, and calls it quits with Lane; Rory and Jess hit it off at lunch and Jess leaves with a secret souvenir -- the bracelet that Dean gave Rory, which he picks it up and holds on to after Rory drops it; Sookie and Jackson work things out so well that he proposes and she accepts; Lorelai and Rory quarrel when Rory finds out that her mother lent a sympathetic ear to Dean's concerns about Jess; after Emily agrees with her daughter's distrust of J

Christopher comes to town on a business trip with his girlfriend Sherrie in tow. Since Sherrie and Christopher's relationship is getting serious, Sherrie wants to begin bonding with Rory -- on Friday night. Without consulting Emily, Lorelai excuses Rory from The Gilmore Friday Night Dinner, and takes Christopher with her instead. When Emily finds out about Sherrie over cocktails, she has a meltdown and rushes off to the kitchen. Lorelai follows her there and finds out that Emily has always envisioned that Lorelai and Christopher would end up together. Now that she sees that this isn't going to happen, Emily blames Lorelai for always keeping him, and everyone else, at arms length. After mulling over her mother's words, the next morning Lorelai tells Christopher that she's always thought that they would get back together, too, and that's why she's never had a relationship that lasted, including the one with Max. Christopher gets very angry, refusing to accept the responsibility for the w

Rory embarks upon a campaign to improve Lorelai's relationship with Jess, and convinces her to let him clean out their gutters so he can make some extra money.

Luke can't stand how cramped his living quarters have become now that his sister has sent all of Jess's things to Stars Hollow, so he goes apartment hunting, first with Jess and then with Lorelai, who finally finds him a great place to live. When he finds out later that Taylor will be his new landlord, he explodes, tells Taylor to throw out his application, impulsively buys the building which houses his diner and the flower shop next door, and begins to take down the adjoining wall to expand his living space.

When Dean notices that Rory isn't wearing the bracelet he made for her, she covers her shock at its loss and lies that she removed it because of a rash on her arm. She searches for it frantically all over Stars Hollow, not realizing that Jess picked it up after she dropped it on the bridge two weeks earlier when they shared