Holden comes home and Jade sneaks into the house right behind him. She leaves an envelope for Lily in the living room, but Holden catches her as she is leaving. Holden wants to know if there is anything in the envelope which would upset Lily, and Jade tells him to look for himself. There is money inside. Jade wants to begin paying Lily back for her expenses, but Holden explains that no money Jade can give Lily can make up for the hurt Lily suffered by Jade's pretending to be Rose's child.
At the coffeeshop, Luke runs into Kevin and his new girlfriend. Luke tells Kevin that he is with Jade now and that since Holden has calmed down, perhaps he and Kevin could start hanging out again. Kevin says no; he has no time for Luke now that he has this new girlfriend.
Casey and Gwen are working on putting together the music for Lisa's new club when Will and Maddie take a break from calculus and join them. Several performers come to audition, and each one is worse than the last. Casey and Gwen are discouraged and foresee many hours of work ahead of the two of them before the club opens in a week.
Carly and Katie are at Carly's house and hear pounding in the basement. Katie knows it is Mike down there searching for his stashed rubies. She grabs Carly's hand and hustles her out of the house, but Carly wants to know why Katie is distracting her. Parker and Hal show up to fetch Parker's bike for a ride with his dad the next day. Unfortunately, the bike is stored in the basement where Mike is desperately trying to plaster over the hole in which he discovered the old skeleton. Katie offers to take Parker down to get the bike which would give Hal and Carly a chance to chat privately. Katie bribes Parker to stay upstairs and she goes down to get the bike and warn Mike that they are home.
Back at the Snyders, Holden refuses to take Jade's money and worries how Jade is going to eat and get to and from work. He gives her some of his own cash, which Luke sees. Luke challenges Jade for taking Holden's $40. Jade realizes that Luke is upset and he tells her that he can no longer see much of Kevin, whom he loves. He is discouraged that Kevin is straight and cannot return Luke's feelings. Jade tells him to look around for someone new, but Luke is not interested. Jade tells him how much she cares for him and kisses him. Holden walks in on the end of the kiss as Luke is shoving Jade away.
Katie takes the bike upstairs and tells Mike to keep quiet. Parker wants his mother to join him and Hal on the bike ride tomorrow, but Carly tells the child it is his "guy time" with his dad. Katie leaves and Parker says good night to Carly while Hal puts the bike in the car. Suddenly Parker remembers he needs his bicycle helmet, too.
The music auditions are a bust so Gwen and Casey will be burning the midnight oil. Neither Will nor Maddie is pleased about this, but they leave to resume their calculus studies.
Back at home, Mike tells Katie that he could not find the rubies, and Katie keeps pushing him to tell her exactly what he did find. He claims he found nothing but he is obviously upset. He goes outside to get some air and flashes back on finding the skeleton.
In the basement, Carly and Parker are looking for his helmet and Parker notices the patch of wet plaster on the wall. He asks his mother about it, but Carly chalks it up to residual moisture from the explosion of the hot water heater the day before. Parker is not convinced and seems to have some of his psychic feelings about the wall.
Meg insists to Jack that she doesn't know how the bloody clothes got in the backseat of her car. When he threatens to bring Paul in to the station house, she quickly stops him but later, Paul shows up anyway. They convince Jack to give them five minutes alone. After Jack leaves, both agree Emily set her up. Paul suggests that it's safer for her to be in jail and decides they must tell Jack that Dusty is dead. Later, Meg is placed under arrest for kidnapping Dusty. Katie confides to Nancy that the book she wrote is ruining Mike's life. She asks her to "tell the world" that she wrote "Oakdale Confidential." Nancy agrees to consider it. Finding Mike has spent the night on the couch, Nick pushes him to admit what's bothering him. Though he reminds him he's a cop, Mike eventually admits he found a skeleton behind the wall where he originally hid the rubies. An angry Henry demands that Emily meet him and accuses her of kidnapping Dusty. Emily claims she's got it under control and soon Meg will be in prison, accused of killing Dusty because she was jealous of his relationship with Jennifer. When Henry threatens to tell all, she shows him the briefcase filled with B.J.'s money and vows to get rid of it if he says a word. He calls her bluff and realizes the briefcase is empty. Carly tells Gwen how she tricked Jack into coming back home and he resents her now. After Gwen leaves, Carly panics when she can't find Sage. She calls the station house but enlists Nick's help instead of Jack's. Nick quickly heads to the basement where he finds the plastered wall and then the little girl who is hiding. Realizing Will worked the night shift at the hospital, Casey offers to hire him at Crash for minimum wage but Will turns him down.
At the Snyder house, Jack doesn't believe Sage was missing. He believes it was a ploy to get him to the house. Nick emerges from the kitchen and tells Jack, Carly is telling the truth, Sage was missing. Jack is angered to see Nick. Nick goes back into the kitchen. Jack suggests Carly would use Sage to get to him. Carly becomes enraged at the suggestion that she would use her children. She tells Jack he is in him home and they are his family. Jack doesn't want to have this discussion again, it's over. Carly tells him if it's over to get out. With a shocked look on his face, Jack leaves. Nick offers to stay, but Carly wants to be alone. Jack goes to Yo's. He has a beer and starts reminiscing about his life with Carly. He takes off his wedding band and sits it on the bar. At the same time, Carly looks at a picture of her, Jack and Sage. She kisses her wedding band.
Mike is having a nightmare about the skeleton, when Katie enters the room. He won't tell her what is going on. She tells him, Nancy Hughes will tell everybody she is the author. Katie believes this will solve Mike's problem. Mike doesn't think so. Katie begins to think he found something in Carly's basement. She badgers Mike until he tells her, he found a skeleton. Katie is unnerved, but glad she knows. Now, they can work together. She wants to go to the police, but Mike is afraid he will be implicated because of the rubies.
Paul takes out a stack of money and convinces Henry to have a few drinks and play pool with him. They go to Yo's Paul deliberately loses. He and Henry continue to drink. The conversation turns to Emily. Paul convinces Henry to tell Emily's secret. Just as Henry is about to speak, Jack walks in. Henry thinks Paul is setting Emily up. Henry says the only thing Emily told him, was that she shot Paul. Paul knows Henry is hiding something, but he says his alliance is with Emily. Henry leaves to go pass out in private.
Emily orders and receives a package. She leaves with the package and goes to Meg's room at the Lake View. She opens the package and takes out a finger print kit. While reading the instructions, she takes finger prints from a glass and puts them on the gun.
Jennifer arrives at the station to see Hal. She sees Dusty's things, and then she sees Meg. She goes into the interrogation room to ask about Dusty. Meg says she doesn't know anything, but Jennifer should stop pointing fingers and search for Dusty. Jennifer wants to now what Meg knows. Meg tells her to go to Paul. Jennifer leaves. Emma arrives to see her daughter. Meg tells her mother Emily has Dusty and has framed Meg. Meg informs her mother that Paul loves her and will help her. She begs her mother not to say anything. Emma tells Meg, if nothing has happened in 24 hours, she is going to Hal. Emma hugs her youngest child; then, the officer takes Meg away.
Paul returns home and yells for Emily. There's a knock on the door. It's Jen. She tells Paul if he doesn't tell her, 'what's going on' she'll never speak to him again. He tells her Emily has Dusty and is framing Meg. Jennifer says Emily needs help. Paul tells his sister, if they turn Emily in, Emily may kill Dusty.
Tom asks for Emily's help in the case against Meg, while Paul appeals to Jennifer that they should work together to find Dusty. Emily and Meg come face to face at the police station, and Meg goes off on her rival, leading Emily to suspect that Meg knows who set her up. Meg calls Paul to let him know what happened. Later, Emily gets a phone call from Jen who, as she and Paul contrived, tells Emily that she's heard from Dusty! Casey asks Maddie if she's excited. Today is the big day: The author of "Oakdale Confidential" is being revealed. That's her, right? Um... Maddie says, just as Nancy Hughes steps into the spotlight. Maddie realizes Casey knew all along, and was just teasing her. Nancy answers questions from the press about the book, and then comes face to face with an angry Lisa, not at all pleased about how she's portrayed in the novel. Kim suggests the women have a few drinks and make up. They do. Holden asks Luke why he pushed Jade away the other night and Luke nearly comes clean, but then Jade rushes in with Lily, who is in a great deal of pain. Holden takes Lily to the hospital, with Lily reluctantly leaving Jade to take care of Faith and Natalie.
Carly is packing clothes for Parker and Jack when Nick comes by to retrieve his cell phone. He also says he has something for her and holds out a small box, and Carly strongly reminds him that she's not available and doesn't want his attention anymore. He tells her it's not for her, it's for Sage; she opens the box and finds a bracelet with a bell on it, which Nick tells her is so that she can hear Sage next time she gets lost. Carly breaks into tears and apologizes for having jumped to the wrong conclusion, but Nick tells her he understands and says he needs to be in Carly's good graces to help smooth things over with his coworkers down at the police station, who have all been shunning him lately. Carly calls Sage downstairs and has Nick give her the bracelet. Carly and Nick agree that they're on decent terms now, and they leave so Carly can take Sage to a play date.
At Mike and Katie's house, Katie wants to go to the police, but Mike wants to wait; then, Jack rings their doorbell and says he heard they were looking for him. Mike decides to tell Jack about the stolen rubies that he hid in the basement wall and about the fact that when he went to get them and turn them into the police, he found a skeleton instead of the rubies. Jack is upset to learn that this is in his house and that Mike didn't come to the police sooner. They call to warn Carly that they're coming over, but she has just left the house. When they reach the house, they go to the basement, and Jack begins breaking down the wall. Carly returns home and hears the noise and calls out to find out who's there; Jack asks Katie to go upstairs and explain things to Carly and make sure Carly and the kids get out of the house, so they won't see anything disturbing. However, when Carly sees Katie and finds out Mike and Jack are down in the basement, she storms downstairs; seeing the broken wall, she marches over and demands to know what Jack is up to, but as she approaches the wall, the skeleton tumbles out and falls on top of her. Carly screams and faints, falling into Jack's arms.
At the police station, Meg is brought back into the interrogation room, and while there, she overhears Henry, who has arrived to pay a traffic ticket. Meg confronts Henry and demands that he tell her how he got Dusty's bloody clothes into her car; he swears he never put anything in her car.
At the Lakeview, Hal runs into Margo and grills her about why Tom would have been questioning Emily; she reluctantly tells him the little she knows about the situation, while making it clear that she has no fondness for Emily, and they leave the Lakeview together.
Emily is on the phone with Jennifer, who claims to have just received a phone call from Dusty saying he'd been kidnapped but had escaped; when Emily asks where Dusty is, Jennifer says the police are tracing the call, because they lost the connection before Dusty could tell her exactly where he was. Jennifer asks Emily to let Paul know the good news, and she hangs up. Paul comes out and asks Emily about the phone call; Emily lies at first and tries to leave, purportedly to go buy them some caviar for a celebration, but Paul receives a text message from Jennifer asking him to give her 15 minutes, so he tries to stall Emily. He ultimately gets Emily to admit that the phone call was from Jennifer, and Emily tells him what Jennifer had said about Dusty. She then says Paul should go wait with Jennifer until she gets more news, but Paul says he thinks they should go together or stay home together and wait to hear from Jennifer. Emily says she's going out on the terrace for a minute, and while outside, she calls Henry, who is at the Lakeview, and begs him to come help her distract Paul; Henry refuses and hangs up. When Paul sits down on the terrace and turns his back on Emily, she hits him over the head with a potted plant, knocking him out. She then takes off for the abandoned house where she has hidden Dusty, and Jennifer follows her there. Emily goes inside, and when she sees Dusty still tied up, she realizes that Jennifer is onto her. She unties Dusty from the chair, leaving his hands tied, and moves him to another part of the house, while outside, Jennifer calls Paul and tells him she managed to follow Emily. Paul tells her about Emily having knocked him out and warns her to be careful, but when he asks Jennifer to tell him where she is, they lose the connection. Jennifer tries to call him back several times, but she can't get through, so she goes inside the house and calls out to see if anyone is there; Emily, holding a gun on Dusty, warns him not to make a sound.
Paul goes to the Lakeview to find Henry and becomes rough with him, demanding that he tell Paul where Emily is. Henry insists he doesn't know, and a policeman shows up and tells Paul to let Henry go. Henry thanks the officer for helping him, and the officer tells Paul he's under arrest, while Paul yells that Henry better not let anything happen to Jennifer.