It's a new school year and the gang's not all here. Dean Loward is determined to rid the campus of Omega House and his plan includes demolition. James attempts an intervention with the demo man by reviewing the events of the previous school year. One returnee is Karen who protests the destruction of he campus home. She returns along with her soon to be divorced father and stepmother. Daddy suggests that Karen and her friends live this year in his vacation home. Karen agrees and thus, Omega house moves to a luxury dwelling where James continues reliving memories of the previous year.

Ophelia is having passionate flashbacks to her time with James, which disturbs her relationship with Ring. Larry turns to James for romantic advice. Karen is visited by a guy from her past (summer) and Emmanuelle amuses herself when not otherwise occupied.

Karen tries to cool the passion with new roommate Cooper by setting him up with French exchange student, Emmanuelle, whose is more interested in another roommate. Ophelia considers moving in with Royce who is cheating with another co-ed. James knows Royce is cheating but keeps the information to himself. Karen and Larry continue their sibling rivalry for control of the condo.

A sold out concert by pop star Minx excites Karen so she decides to enter the Omega House in a radio station scavenger hunt with the prize of free tickets. Sibling rivalry rears up as Larry claims the right to captain the team over Karen's objection. A search ensues for a DD bra and a picture of an authority figure in a compromising position. Both teams manage to obtain one of the items but will Larry and Karen set aside their family feud long enough to claim the prize?

Larry plans a Sci-Fi themed student film with the dual goals, a passing grade and the attention of the girl of his dreams. Cooper offers his unique vision to the project adding a pornographic slant to the production.

Ophelia's dream of her lost lover, Royce, is interrupted by thoughts of James. Karen's green card husband, Guillermo, visits needing her help obtaining a passport. Royce turns up and Cooper helps Karen learn the truth about Emmanuelle.

Larry is torn between his lust for his film muse Sophie and his affection for his film buddy Ciara while James and Ophelia begin to reconnect; Emmanuelle helps Karen and Cooper connect while she finds a new partner.

Karen's divorcing parents show up to the house. Emmanuelle finally tells Karen the truth about being a French Exchange Student. James goes in search of the lost engagement ring.

With James and Ophelia celebrating their engagement all over the condo, Karen, Emmanuelle/Emma and Cooper plan to housesit for a friend and Emma asks Guillermo to go along. Ciara finally is fed up with Larry's blind devotion to Sophie and leaves their latest film causing Larry finally realizes his real muse was always Ciara.

James lies to Ophelia about his bachelor party plans but Cooper tells Karen all so Ophelia, Karen and Emily decode to sneak into the strip club and catch the boys at play. Things go array when they arrive; the boys have gone to spy on Ophelia's Bachelorette party and the three girls wind up as feature performers for the strip club. Meanwhile Larry follows through on his feelings for Ciara. While she is dancing Ophelia finds a drunken Ring who professes his regret at the loss of Ophelia's love.

In an episode inspired by Charles Dickens' A Christmas Carol. The ghost of the founder of Omega House, Jake Marley, visits James and attempts to convince him not to marry Ophelia.