Whitney meets Chad in his car. He asks her to listen to a song that he wrote for her. He says that he auditioned a lot of singers and none of them can sing the song the way he knows she can.
TC spies Chad's car in front of the house and goes after Chad. He pulls him out of the car and starts beating on him. Whitney and Eve try to put a stop to it. TC once again accuses Chad of drugging Whitney. Eve defends him since Ivy told her the truth about how she drugged Whitney. TC questions Eve's change of heart. Eve gets upset when Chad tells her that he came by to have Whitney listen to a song he wrote for her. Eve warns Whitney to stay away from Chad and thinking of a music career.
Sam and Grace are disappointed to find Kay and "Charity" with Miguel. Sam has a little talk with Miguel and Grace talks to the girls. She warns them off of premarital sex. Grace questions Charity about her sexy black nightie and the zombie gives Grace a sad sob story about how it belonged to her dead mother. She asks Kay where she got her nightie and Kay confesses that she bought it for herself.
Rebecca and Ivy are livid when Theresa locks them out of the mansion. They carry on so loudly that Theresa fakes being frightened. She calls for Phyllis the maid, hoping that Phyllis will call the police. Instead, Phyllis pulls out a shotgun. She tells Theresa that she wants to help protect her and the baby and she doesn't mind shooting Ivy and Rebecca. She says those two witches caused her a lot of grief. Ivy and Rebecca force their way into the mansion. Theresa screams at them as she holds onto Phyllis' shotgun. Ethan rushes in the back way. He sees Theresa with the gun and tries to take it away from her. The gun goes off and Ethan falls. Ivy wants to have Theresa arrested for attempted murder. Ethan comes to. He was not hurt and gets up. He defends Theresa and says to everyone that Theresa does belong in the mansion. Eve and TC rush to the mansion when they find out that Theresa plans on moving in. They try to talk her out of it because the stress of the situation would not be good for the baby. Theresa will not be budged. Ethan suggests that Theresa sleep in the bedroom next to his. Theresa is delighted. Gwen locks Ethan's door to keep Theresa out.
The ancient scroll shows Tabitha another picture of her Timmy lying lifeless on the ground.
The zombie assures Kay that she will make love to Miguel tonight and she can't be stopped.
Theresa has a fantasy about being Scarlett O'Hara from Gone With the Wind. Ivy wonders what that is about since Scarlett lost the war. Rebecca smiles cattily and reminds Ivy that Scarlett lost her home, her man and her baby when she fell down a flight of stairs. She also reminds Ivy that Grace lost her baby when she fell down these very same stairs. They see Theresa losing her baby and losing her claim to the Crane fortune.
Rebecca and Ivy ask Ethan a "hypothetical" question about Theresa. They want to know if Theresa would have a claim on the Crane fortune if she were no longer pregnant with Julian's baby. Ethan asks what they are talking about. Gwen gets frighteningly suspicious. Ethan gets a call that delights Ivy. He tells Ivy that he consulted someone who studied over her divorce from Julian and found that there were loopholes in the divorce. He says that there is a chance that a judge from the United States could rule the divorce invalid thus making Ivy the legal Mrs. Crane. Gwen gives Rebecca her condolences but Rebecca tells her it is not over. She has not lost yet. She says that the important thing is to get rid of Theresa first.
Pilar is outraged to find Theresa living in the Crane mansion. She tries to talk Theresa out of going after the Crane money. Theresa's shady lawyer Woody Stumper shows up and agrees that Theresa will not win her case. Ethan tells Ivy that Theresa deserves a settlement for all the pain and suffering Julian put her through. He wants to give Theresa 10 million dollars as a settlement to raise the baby on. Ivy cannot believe what she is hearing and flatly refuses. Ethan insists that the baby must be provided for. Rebecca tries to talk Ivy into settling so they can be rid of Theresa. This idea makes Ivy suspicious until Rebecca says she wants Ethan with Gwen and getting rid of Theresa is worth 10 million dollars.
Kay and the zombie trade barbs at the breakfast table. Kay is hurt that Grace once again plays favorites and puts John ahead of her own daughter. She told Kay to have cereal as she brought a delicious breakfast to John. The zombie rubs it into Kay. Sam shows up with the fire chief. They question Kay about the fire and if she saw anyone near Pilar's house. When Sam and the fire chief want to rule the fire an accident, Zombie Charity steps in and gets them suspicious all over again. She gives them a motive for arson. She plants the seeds of suspicion by telling them another girl was jealous of her and wanted Miguel. That is why she started a fire. She paints a detailed picture of Kay.
Luis and Beth grow closer. Luis says because of her he feels like he is beginning to live again. Diana tells Brian she is blessed to have been saved by him. The two couples plan on meeting in the dining room for breakfast. Woody Stumper listens to Ethan's offer and tells Theresa to take it.
Tabitha tries to use "mortal" recipes to keep Timmy alive and healthy. She is terrified of Zombie Charity. She is fearful that the zombie could end Timmy's life as well as her own at any given minute.
Zombie Charity points the finger at Kay as being the key to the fire at Pilar's house. Kay again claims she had nothing to do with the fire. She swears innocence to her father and denies even knowing anything about the fire. The zombie backs off and tells Sam and the Fire Chief she was not accusing Kay, only that Kay may know of a girl at school who was jealous and would have wanted revenge. The zombie enjoys toying with Kay and making her uncomfortable.
Theresa refuses Ethan's offer of a settlement against both her mother and lawyer's advice. Theresa says she is Mrs. Crane and deserves everything. Ivy says she is glad that Theresa refused so she can live in a shack with Julian's bastard. Everyone tries to talk sense to Theresa but she is hell-bent on going after everything, sticking to Julian's plan and wining Ethan back.
Luis tells Beth that he wants to forgive Antonio. Luis cannot get over how much his brother looks like their father. Both Beth and Luis agree that Antonio seems very much in love with his mystery woman. As Antonio and Sheridan go into the dining room to meet Luis and Beth, Antonio notices that Sheridan has a fever. He refuses to meet Luis. Sheridan agrees to go back to the room and skip the meeting if Antonio would agree to meet with his brother without her. He agrees and Sheridan and Luis once again come close but do not see each other. Luis and Antonio begin to fight but Beth puts a stop to it. Luis wants Antonio to come back to Harmony and goes up to his room to get the picture of their family. Sheridan walks in Luis' room by mistake. She sees the picture of Pilar, Miguel and Theresa that Luis wants to show Antonio. She has a flash of her dead lover. She cannot figure out why. Beth tells Antonio what Luis has gone through since he left town. She tells him how much Luis missed out on and how they had to break their engagement.
The zombie wants to stay like Charity indefinitely. She feels that she must remove all those who know about her. She says she must eliminate Kay, the real Charity, Tabitha and Timmy.
Sheridan falls asleep on her bed wondering why she cannot stop thinking about the picture she just saw. Luis walks past Sheridan's room. The maid left the door open. Luis spies the pretty blonde on the bed. He slowly walks into the room, never taking his eyes off the sleeping woman. He stares in disbelief. He says "It's her. It really is."
Beth gives Antonio the scoop on his family and the Cranes. He cannot believe that Theresa is actually carrying Julian Crane's baby. He blames himself for not being there for Theresa. Beth tells Antonio that Luis blames himself also. They both confess how much they love their Bermuda partners. Beth tells Antonio that she is not jealous of Luis' dead love and Antonio relates how he knows his "Diana" will always have her dead lover in her heart. Beth does get suspicious when Antonio says he knows Julian was murdered. He tells Beth that Julian Crane deserved to die and he hopes they never catch the murderer.
Sheridan's reunion with Luis turns out to once again be a dream. She tells Luis in her dream that she must stop thinking about him and that she started to feel something for another man. She says to keep losing him at every turn is just too painful to bear.
Ethan has a heart to heart with Theresa. He begs her to take the settlement for her baby's sake. He also tells Theresa that even if she would win the lawsuit, they will never get back together. He tells her that no matter what she does they can never have a relationship. He refuses to give her another chance. Pilar is shocked to find out that even after Ethan's pledge that he will never take her back, Theresa still intends to go ahead with the lawsuit and still intends to get Ethan back for herself. Theresa tells Pilar that she can turn back time if she is declared Mrs. Julian Crane. She can give Ethan back all he lost including his name.
Sheridan wakes from her dream, sad and depressed that it was once again only a dream. As she opens the hotel door, she gets a glimpse of the real Luis. (Finally) Sheridan runs after him as he heads for the elevator. She calls out to him in her weak gravelly voice but he does not hear her.
Theresa once again refuses Ethan's generous settlement. She tells Pilar that she deserves everything that the Crane's have to offer and she will get it. She does not realize that Alistair is watching her and getting furious by her bravado and her nerve of actually thinking that she can take over the Crane empire. Theresa's lawyer, Woody Stumper comes in and tells her that her case will be heard in court today. He says that even though he thinks she should have settled out of court, he is going to help her "go for it." He says he will do everything in his power to help her win.
Tabitha calls Harper-Collins and asks for an advance royalty check so she and Timmy can leave town and get away from evil Zombie Charity. She feels that getting out of town will save Timmy from the terrible fate she sees for him in the ancient scroll.
Kay invites herself into Tabitha's house and asks Timmy if she can see the Book of Spells. Timmy lets Kay get the book away from "watchdog" Fluffy. When Timmy realizes the Kay is planning on destroying the zombie, thus also destroying the real Charity, he sneezes all over the Book of Spells so he can get it away from Kay. The zombie senses that someone is plotting behind her back. She is furious to find Kay in Tabitha's house and screams fire in Kay's face. She then goes looking for Timmy whom she is sure has the Book of Spells in his hands. Timmy is desperately trying to find a spell that will destroy the zombie but save the real Charity. Tabitha finds him with the book. He also gets a glimpse of the ancient scroll for the first time and sees the vision of his lifeless body. He screams at the sight.
As Sheridan tries to stop Luis before he can get on the hotel elevator, she gets separated from him. She begins to cry in the hotel hallway. She then sees her love and goes into his arms. Luis' face turns into Antonio's. He holds Sheridan and walks her back to their hotel room. She tells him that she needs to let go of her past and appreciate the man she has who is with her now. They kiss. Luis tells Beth that she is wonderful and hopes that she will be willing to wait for him since he plans on going forward with his life. They kiss. The two couples grow closer. Luis intends to invite both Antonio and his new girlfriend home to Harmony.
Ethan, acting as Ivy's lawyer explains to the judge that no one is really entitled to the Crane fortune since there is no sign of Julian's body. He says that it takes 7 years to have someone declared legally dead. Woody Stumper points to Theresa's very pregnant belly and says that she cannot wait that long. Ethan also points out that both Theresa and Julian were so drunk in Bermuda that neither one of them knew what they were doing when the got married, thus making the marriage null and void. Theresa says that is incorrect and she knew that she was marrying Julian. Pilar is horrified to hear this. Rebecca stands up and announces that this proves Theresa is a gold digging tramp who was only after the Crane fortune all the time. Ethan calls Theresa to the witness stand.