Casey and Elwood met up at Oakdale U. Elwood gave Casey some papers he sneaked from a professor. Casey thanked him and Maddie showed up. Casey admitted to her he overslept and missed an exam. Then Adam appeared. Elwood and Casey left to talk about the test. Adam asked Maddie what was wrong. Maddie told him she wondered if her being in high school and Casey being in college would work out. Adam told her not to worry. She left and Casey came back. Adam told him he could tell he was lying and that he shouldn't be lying to Maddie. Casey told him to mind his own business. Maddie returned and asked what they were fighting about. A mad Casey left.

Lucinda went over to Simon's. She told Simon and Carly about the book and that they were in it. Lucinda told Carly she was called a slut in the book. Carly was furious. They ran off to get a copy to read.

Meanwhile, Katie and Henry were out in front of the bookstore, Katie regretting what she wrote. Henry consoled her. Then some excited fans came up and asked her to sign their copies. Katie agreed after some prodding by Henry.

Simon and Carly came to the store and confronted Katie. Simon wondered why she wrote about Carly. He said it was just revenge. Carly called Katie jealous. Henry told them both to just read the book and he left. Then Simon and Carly left. Katie went back to signing books for her fans. She said out loud to herself that she wasn't sorry she wrote it. Mike stepped up to the table.

Emily and Craig sat in the Lakeview. Craig made sure she put blanks in Dusty's gun. She did. She wanted to know how being his stooge helped her. Craig told her to trust him especially since she didn't have anyone else on her side. Emily left and Craig called Lucy. Lucy warned him again about Dusty. He told her he was meeting Dusty in the garage.

Paul switched the bullets back to the original ones in Dusty's gun. Paul heard Dusty coming into the garage and hid around the corner. Dusty got into the car and grabbed the gun from the glove compartment. Paul's phone rang and he left. Craig came in and Dusty aimed the gun at him. Dusty told Craig to tear up the custody papers and leave town. Craig questioned Dusty about the consequences of his action. Dusty persisted and Craig didn't back down. Lucy appeared around the corner. Craig told Dusty to shot him. Lucy ran for the gun and Dusty pulled the trigger. A shocked Craig had a gushing wound in his chest He fell into Lucy's arms.

Simon and Carly read Oakdale Confidential to find Katie wrote a new section in the book saying they stole the crown jewels the night of the costume ball. Carly is upset, but Simon believes that part of the book is fiction - that Katie doesn't really know it actually happened. Carly is panicking thinking she'll be arrested and go back to jail. Simon tries to assure Carly it will all work out. Carly is sure Jack will read the book and put all the real pieces together. Simon claims Jack wouldn't have any proof. Carly is now suspicious that Simon told Katie about the heist when they slept together. Simon tries to reassure Carly by telling her he'll protect her.

Mike tells Katie he blames her for their marriage falling apart - not Simon. Katie still claims she isn't mad about Simon choosing Carly over her. Mike doesn't believe her. He tells her she's like a spoiled child. Mike tells Katie he wants her to leave him alone. She says she wrote the chapter in the book to get back at Simon - by telling everyone Simon is a jewel thief. Katie begs Mike to forgive her. He wants her to prove it by ignore Simon - just a Simon shows up to talk to Katie.

Simon wants to know why she wrote what she did in the book. She tells him it was because he wrecked her marriage. He, like Mike, tells her she has to grow up. Katie tells Simon she got the idea for the book when she saw Simon put the diamond necklace on Carly's neck at the Lakeview.

Jack stops by Carly's and comes across the book. Carly nervously tries to say it's a bunch of nonsense. Jack asks to read the book to find out what Carly's trying to hide. Carly talks Jack into not reading the book. Jack notices the necklace on Carly's neck - mentioning, again, Simon's jewelry-thieving past.

Craig is lying on the garage floor dying from a gunshot while Lucy tries to help him. Dusty lays the gun on the ground and walks out of the parking garage. Craig becomes unconscious before the EMTs arrive. Margo arrives on the scene unaware that Craig is the one who has been shot. They rush him to the hospital. Lucy tells Margo it was Dusty who shot Craig.

Meg and Paul discuss wedding plans. Paul says they're not going to worry about Craig anymore because Craig is not a problem. Meg asks him what he means and Paul talks around the subject. Meg notices Paul is "different" tonight and comments on the change. He mentions he wants him "gone" and he is not the only one who thinks that way. Meg gets a call from the hospital for her to come in. She finds out Craig's been shot and is in critical condition.

Emily runs into Dusty at the bar while he's having a drink. Emily probes trying to find out what happened between him and Craig. He tells Emily he shot Craig. He tells her Craig is dead - with any luck. She claims that was impossible. She then stutters her way around trying to cover up her comment. She leaves just as Margo arrives to arrest Dusty for attempted murder. Dusty tells Margo he did it because of the custody suit.

Emily goes into Craig's room telling him she didn't understand what happened. Craig's eyes flutter open and he tells Emily she killed him - just as his heart monitor flat lines. The doctors run in and rush him to the OR. Craig regains consciousness telling Lucy she's lying when she tells him everything is going to be ok.

Simon goes back to Carly's to tell her Katie fabricated the whole story about the jewel heist and that they have nothing to worry about.

Katie calls Jack to arrange a meeting about Simon.

Gwen and Adam (now played by Matt Cavenaugh) are at the recording studio working on Gwen's album when Iris, Gwen's mother, walks in and destroys Gwen's good mood and disrupts her recording. Gwen tells Adam to get Iris out of the studio, but first Iris tells Gwen that Iris's sister, Candace, is coming to help her stay sober and she hopes that this time will be different. Gwen tells Iris she doesn't care and to get out of the studio. During the argument Jade walks in and she sees Gwen's frustration rising so she phones Will to come down to the studio. Will tells Jade to tell Gwen he will be right there, but Jade steps back and watches as Adam kicks Iris out of the studio and then comforts Gwen who can't get back to singing because she is too angry at her mother. Will walks in and sees Adam hugging Gwen. Gwen brakes away from Adam's hug when she sees Will to tell him about her mom's disruption and that she feels guilty about not accepting her mom's recovery. Gwen lets Will know that her Aunt Candace is coming to support her mom and then she asks Adam how much studio time they are wasting. Adam tells Gwen to go home and not worry about the studio and when Gwen leaves to freshen up Will thanks Adam and tells him that Jade is the one who phoned him to let him know Gwen needed him. Will and Gwen leave the studio and Adam rips into Jade for calling Will and pretending to care about Gwen. Adam tells Jade that she needs to leave Will alone. An offended Jade tells Adam that he doesn't know what she wants, but he tells her to stop playing it safe and realize how smart and beautiful she is and then he kisses her and the two begin to roll around the studio tearing each other's clothes off. After leaving the studio, Gwen and Will go to Java and discuss Gwen's guilt about her mom's attempt to stay sober and be a good mother. Gwen feels like she needs to support her mom and Will tells her to take care of herself and let her mom take care of herself.

At the hospital, Lucy talks to an unconscious Craig and tells him the entire event could have been avoided if he would have let Dusty raise Johnny. As she relays her frustrations to Craig, Katie and Margo come into the room and the three discuss Craig's failings and Craig wakes up and tells the three of them to "shut-up". Katie and Lucy leave to get a doctor to check on Craig and Craig expresses his surprise at actually being shot by Dusty and an alarmed Margo is worried that the shooting may have been Craig's plan all along. Margo tells Katie about Craig's revelation, that the shooting wasn't supposed to happen that way, and she says it is as if he knew that Dusty was going to shoot him. Margo comforts Lucy and then Lucy leaves to go see Dusty. Margo and Katie discuss Katie's marriage problems and Katie tells Margo she is going to get Mike back and she will take care of Simon.

At Java, Meg and Paul have stopped for coffee and Meg tells Paul that she doesn't think Craig will survive being shot by Dusty. Meg, frustrated by Paul callus attitude towards Craig, leaves Java and returns to the hospital to continue helping Craig. Paul then phones an unseen person to join him at the Lakeview to celebrate Craig's shooting. The person Paul called is Barbara and the two meet at the Lakeview to discuss Johnny's fate and Barbara is concerned that Johnny will now lose Dusty to prison. Paul tells Barbara he will "move heaven and earth" to help the person who gets rid of Craig and he promises to have Dusty's back from now on. Barbara is pleased to see the change in Paul and when she asks why he has changed, Paul tells her he is going to marry Meg next week and that Johnny will be the center of a strong, happy family with Craig out of the picture. Barbara tells Paul that Dusty is like another son to her and that if he has manipulated Dusty in any way to cause Craig's shooting she will be very angry. As the two toast Paul's marriage to Meg she walks in and tells them of Craig's recovery. Paul is angry that Craig will survive and Meg tells him what Dusty did was wrong and that if she joins their family the only way they can protect Johnny is legally. Paul tells Meg she is right, but then leaves her and Barbara to take care of Craig himself. Meg tells Barbara she wants to keep Paul away from Craig because she is afraid that if they are together again Paul will end up like Dusty. At the hospital, Paul enters Craig's room and removes a pillow from a chair and places it over an unconscious Craig's face.

Jessica and Dusty are at the police station, where Dusty has been arrested for Craig's shooting. Jessica tries to convince Dusty to keep quiet and only talk to her, while Dusty remains frustrated that Craig is still alive. Jessica tells Dusty to stop talking like a "moralistic vigilante" and be a concerned father and fight to stay out of prison by helping her with his defense. Lucy has arrived at the station and tells Dusty that Craig will live and tells Dusty that he is now just like her father. She lets him know that she believes all of this must end and he lets her know that he will do whatever it takes to keep Johnny from Craig. Dusty tells Lucy he regrets hurting her, but that there is no way she can love both him and Craig because it will destroy her. She implores Dusty to fight for Johnny because the only thing he and her father have given Johnny now is a life filled with hatred and violence. Lucy tells Dusty she has no pity for Craig and blames him as well for everything that has happened. Dusty says he had to shoot Craig, but she replies that he has crossed the line and she doesn't know what to do or how to live with what he and Craig have done. Then Lucy tells Dusty good-bye and leaves the police station.

Over dessert at Java Gwen and Will discussed Iris and her supposed turn-around. Gwen then said how miraculous it was when Will showed up at the studio to save her. Will admitted Jade called and told him. Gwen said it was just another way for Jade to try to stay in their lives, and Jade was seeing Adam for the same reason. Gwen left to get back to work and Will stayed.

At the studio Adam and Jade got busy on the floor. After they were done, Adam asked her if she was still thinking about Will. Jade got angry and Adam egged her on. Jade said they would never hook up again; then Adam kissed her and they got busier. Gwen walked in and went ballistic over what she saw. Adam tried to talk her down to no avail and she left. Jade didn't like that Adam told Gwen they just slept together because Will would now think that she was a slut. Adam talked her down and they kissed....and they made plans for future "business."

Paul tried to smother Craig in his hospital bed. Emily walked in and Paul saw her. Emily ran but Paul caught her. Paul told her to forget what she saw and he would be her "friend." Em did not want to hear it and said she was going to the police. Paul said not to and he would owe her forever. She asked him what that meant and he had no answer. Paul turned the tables and declared he would tell the police about her involvement in Dusty shooting Craig. When he said that Emily figured out he switched the bullets back . Then Emily threatened him again with the police but Paul said she could never do it because she cared about him too much. Meg walked up and asked them what they were doing outside of Craig's room.

In Simon's suite Carly told him she didn't want to wear the diamond around town because she didn't want to seem suspicious. Simon told her to not worry about it and he put it around her neck. Then they went out shopping and ran into Lisa. Lisa told them she knew what they did since she read the book and that the police would catch onto them. They were shocked and Lisa admitted it was a joke and went along her merry way after commenting on the necklace.

At the Oakdale P.D. Katie met Jack. Katie told him she made up the jewelry heist story but she thought they really did it. Jack wanted proof. Katie told him about Simon questioning her about it and the way he acted she just knew he and Carly did it...the building finished, a paid-off loan shark, Carly's necklace and Simon's perchance for keeping souvenirs from his thievery. Jack said it was all circumstantial and he could do nothing without evidence. He also told Katie she was doing it because she was mad. They thought about calling the prince but didn't want to raise an unnecessary stink, so they called Vienna. A flirty, bejeweled Vienna told Jack the jewels were always checked before they were placed back in the vault and that she was there and there were no problems. Jack was satisfied and Katie said she'd investigate on her own.

Carly was still sitting in front of the bookstore and Katie walked up to her. Katie said she wanted to buy herself something nice and asked Carly where Simon got her necklace from. Over at Simon's room a bellman knocked on his door. He had a message for Simon. Simon read it and it said that he'd been a bad boy and they knew what he'd done. It was from Vienna.

At Lily and Holden's house, Lily is on the phone with the photographer for Meg and Paul's wedding, while Faith handles a call from the bakery. Jade comes in with things Holden asked her to pick up, and Lily wonders where he is. Jade suggests that perhaps he's at the Lakeview, because she's seen him there a few times lately, but Lily doesn't think that sounds right and tells Jade she thinks she and Holden have been acting like they're hiding something lately. Jade says she doesn't know anything for sure, and Lily should ask Holden about it directly. Faith, meanwhile, hears this because she's been eavesdropping in the hallway. The doorbell rings, and it's Lucinda, come to help Lily with some things for the wedding. Lucinda can see that something's bothering Lily. Lily asks Lucinda if Holden got involved with another woman while she was in her coma. Lucinda bursts into laughter and tells Lily that Holden had neither the time nor the inclination to do any such thing. Lily points out that it wasn't that long ago that Holden had his fling with Julia, and when Lucinda says they've both changed since then, Lily says yes, she's changed: now, she's fat. Lucinda tries to reassure her that she's not fat, and Faith overhears some of this conversation, too. Lucinda tells Faith that she and her mommy were having a pretty serious discussion, but Lily says Lucinda was just leaving. She walks her to the doorway, where Lucinda tells her that she's beautiful and that Holden loves her, and she needs to remember both of those things. Lily goes upstairs with Faith to pick out dresses for them to wear to the wedding; when she holds up a black dress, Faith says Holden really likes that one and that when Lily was in the coma, Holden would tell the kids stories about how he and Lily first met, and how they fell in love, and that one story involved Lily wearing that black dress and them leaving a party to go dance outside in the moonlight. She asks if that story is true, and Lily says it is, but when Faith suggests she wear that dress to the wedding, Lily says there's no chance she'd fit into it right now. Holden walks in and greets his "girls," telling Faith he brought extra cookies from the bakery; Faith runs downstairs to get some, while Lily asks if Holden left them down there so she wouldn't be too tempted. Holden is at a loss as to what to say to Lily about her weight, but he tells her what's important is that they have her back when she could have died. He tells her he loves "the girl you were, the woman you are, and the woman you will be" and says that their relationship is "better than ever."

At the shops in Old Town, Holden walks out with his blond female acquaintance and tells her, "That was pretty amazing!" She says he's the one who was amazing, but then Holden spots Katie and Carly, and he tells the woman that he knows them, so they turn and go a different direction to avoid being seen. Meanwhile, Katie grills Carly about the diamond necklace Simon gave her, demanding to know where Simon got it. Katie says they both know that Simon stole it. Carly says that's all just a piece of fiction for Katie's book, and she accuses Katie of trying to ruin Simon so she can prove to Mike that she now hates Simon. She tells Katie to leave her and Simon alone, and while she's defending Simon to Katie, he walks up. He asks Katie to please leave Carly out of this, because none of this was her fault. Katie is called back into the bookstore to sign more autographs, and Simon sits down with Carly and tells her about Vienna's note, which he thinks was a plant from Katie. Carly's phone rings, with her carpool friend telling her that JJ has found something to do after school and won't be meeting her at the shops, so Carly asks Simon if he wants to go have a cup of coffee with her at Java. He declines, saying he'll stay and try to talk to Katie one more time. When Katie walks out, Simon tells her she has to believe him when he says he didn't steal the necklace, but Katie tells him she's finished believing anything he says. He tells her that in Carly, he's found someone who believes he can be a better man and that he's not going to lose her, saying, "Believe THAT." Katie tells him she hopes she's around to see it when someone brings him down, and at that moment, Simon turns to see Vienna walking up.

At Java, Carly runs into Jessica Griffin, who seems upset. Jessica tells Carly she had a bad day, because she had to visit a client in prison who'd been convicted of robbing a bank with her boyfriend, who got away. Now, the woman has lost her children, her family, and her freedom, all because she was hooked up with the wrong guy. Carly asks Jessica if she knows when her probation is over, and Jessica says she can find out; she tells Carly she's read "Oakdale Confidential" part 2, and she suggests that if Carly needs to tell her something in confidence as her lawyer, now would be a good time.

At the hospital, Meg wants to know what Paul and Emily were doing coming out of Craig's room. As Paul tries to stop Emily from saying that he'd been trying to smother Craig to death with a pillow, one of Craig's monitors goes off, and Meg goes in to see what's wrong. Paul asks Emily why on earth she'd tried to help Craig by putting blanks in Dusty's gun, wondering what it is that Craig could possibly have promised her in return; when Emily looks at him longingly, Paul realizes that Craig promised her him --- that they would have a relationship again. Emily denies it, but Paul can see that it's true, and he asks just how Craig thought he could promise such a thing; Emily points to the window of Craig's room, and Paul goes over and sees Meg holding Craig's hand. Emily says, "That's how." They walk away from the window, and Paul tells Emily that because of all they've been through, and how intense it all was, especially losing their baby, they have a special bond, and that perhaps Emily knows him better than almost anyone else. He tells Emily they have a bond in what they've shared and in what they've lost. Emily is touched, but she asks Paul to promise not to try to harm Craig again. When Meg comes back out, she tells her that when she arrived, Paul was simply trying to talk to Craig, and she told him she didn't think it was a good idea. Meg has to leave again, and Paul thanks Emily for covering for him and kisses her on the cheek. In Craig's room, Craig asks Emily what went wrong with the gun, and Emily says maybe Dusty noticed the bullets were blanks, but Craig doubts that; he wonders who else might want him dead, and Emily starts listing people, but Craig is struck by who she doesn't name: Paul. Outside, Meg tells Paul she can't wait for their wedding tomorrow, so Paul suggests they not wait at all, saying they could get married tonight.