Peter bails Michael out of jail. He explains that he only served a few days of jail time, and asks Michael to testify on his behalf before the medical board. The demon tries to goad Kimberly into committing acts of violence against her enemies. Sydney breaks into Kimberly's motel room and discovers a grotesque photo collage of Syd and others. Sydney and Michael's warnings about Kimberly are ignored by the police. Kimberly confronts Peter about his alliance with Michael, and he expresses a romantic interest in her. Amanda tells Alison that Billy and Brooke are getting married. Alison realizes that Hayley hired her to get her out of Brooke's way. Jo rejects Jess's hasty marriage proposal. Jane's firm faces foreclosure. Jane aggressively pursues a famous designer named Richard Hart, and is hired by his ex-wife's firm. Paul tells Matt that Carol has moved out, but she is actually just out of town for the weekend.

Jo is certain that Amanda will not gracefully bow out of her relationship with Jake. Hillary refuses to believe that Chas tried to seduce Amanda. Chas files a $10 million sexual harassment suit against Amanda, and the agency does not support her. She turns to Jake for consolation. Sydney is assaulted by three hookers when she invades their turf. Kimberly comforts her and pays her rent. She convinces Syd to participate in her plot to kill Michael, and they plan the crime over ice cream. Michael stands in the way of Jane's plans to expand her business. Billy's college friend Rob comes to town to serve as his best man, and gets along well with Matt. Billy is stunned to see them kissing in the courtyard.

Jake uses his reward money to purchase Shooters. When Jake drops off some papers at the design firm, Chris mistakes him for a deliveryman and makes a lewd comment about Sydney. Chris denies the allegations. Jane lashes out at Jake, and fires and evicts Sydney. Jake gives Syd a job at Shooters so that she won't have to return to the mental hospital. Chris tries to attack Sydney. Michael and Kimberly are asked to appear in a coffee ad. Peter agrees to allow this in order to impress Amanda. She goes out to dinner with him. Billy takes a liking to Alison's college roommate, Susan. Susan moves in with Alison when a chef job in Santa Barbara falls through.

Michael is astonished when Kimberly pays him a late-night visit. She reveals that she was in a coma for months, and that her mother claimed that she had died to keep Michael away from her. Michael dumps Sydney without explanation. When she brings a police officer to the hospital to have Michael arrested for manslaughter, Kimberly enters the room, prompting Syd to faint. Kimberly is plagued by headaches, and removes a wig in the bathroom to reveal a nasty scar on the side of her head. Amanda fires a model after learning that she is from the agency Models Inc., and is reprimanded by her boss. She reveals that her estranged mother, Hillary Michaels, is the head of the agency. Amanda rejects Hillary's overtures, but Jake later convinces her to give her mother a chance. Alison takes back her decree about not sleeping with Billy until their wedding night. Alison's parents hire an obnoxious wedding planner, but Billy and Alison fire her and decide to marry in the courtyard of the apartment bu

Bruce learns that D&D has been purchased by a consortium of doctors. Peter fires Bruce and appoints Amanda president. Amanda gives Billy a promotion and orders him to fire Alison, who has begun to experience blackouts. Bruce hangs himself in Amanda's office. Matt tells Billy that he can save Alison's job by checking her into rehab. They conduct an intervention, and Alison agrees to seek treatment. She escapes when the trio stops for gas, but later checks herself into the clinic. Sydney decides that she doesn't mind being a hostage when Chris buys her expensive gifts and gives her unlimited use of his credit cards. She finally calls Jake and asks for help after Chris loses all of Jane's money and becomes abusive. Michael, Jane and Jake fly to Las Vegas, where Jake expresses his doubts about Sydney's behavior. Jane and Michael learn that all the money is gone, and sleep together. Michael demands to know why Kimberly suddenly has a child. Jo struggles to prove that her son is alive.

Kimberly sets off her bombs, destroying half of the building. MacKenzie suffers a fatal heart attack. Billy breaks down Alison's door and pulls her to safety, although she is blinded by the blast. Peter saves Kimberly from drowning after the impact knocks her into the pool. Kimberly is placed in the psychiatric ward, and is unable to recall the events of the past week. Billy storms out when Hayley calls him to task for not immediately taking Brooke on their honeymoon. Brooke later moves out of the mansion and into Billy's apartment. Jess is killed in the fall from the construction site, while Jake suffers only minor injuries. He shuns a guilt-ridden Jo. The jailed Matt is enraged when his parents seem to suspect that he is guilty of murder. They win back his trust when they put up their mortgage to bail him out of jail.

Michael and Amanda hit the road in search of Peter and Kimberly. Peter befriends a nurse, but she turns against him when he uses her as part of a plot to escape. As Michael and Amanda try to infilitrate the mental hospital, ""Betsy"" prepares to give Peter a lobotomy. Matt develops spinal meningitis as the result of his accident with the street kid (who has died of the disease). Jo is angry when Dominick behaves insensitively toward Matt. Michael blurts out that Sydney was responsible for Jane's stroke. Jane blackmails Sydney into participating in her plot to murder Richard. Jane considers a new business proposition when a salesgirl named Samantha Reilly tells her that the store where she works is for sale. Billy and Alison have a disastrous date. Alison is furious to learn that Jake had aided Billy's pursuit of her.

Jake makes amends with Billy before leaving for a weekend fishing trip. Ted continues to creep around in the crawl space above Amanda's apartment. Jo realizes that someone is in Amanda's apartment; and she and Amanda catch Ted trying to escape. Amanda refuses to allow Jo to call the police until Amanda has tied up Ted and emotionally tortured him. Billy warns Dr. Miller not to interfere in his relationship with Alison. Alison ends their sessions, but not before Dr. Miller makes an astute observation about her relationships with men. Michael learns that Dr. Levin is a client of Sydney's business, and uses this information to blackmail his boss into appointing him chief resident. Michael tells Sydney that he wants to give their marriage a chance. As they kiss, Kimberly observes them from the beach below.

Jake's friends (especially Jo and Amanda) are shocked to learn that the Pretty Lady has exploded. The Coast Guard finds Jake clinging for life to a buoy, and he returns to the building safely. Jo is hurt when Jake completely ignores her to visit Amanda, unaware that he is breaking the news of Palmer's death. When Jo shares her feelings with Jake, they get into a heated argument. He turns his apartment keys over to Matt and takes off on his motorcycle. Alison is disgusted when Billy begins dating their new secretary. Jane and Chris ask Sydney to seek Michael's share of the design firm in the divorce settlement, but Michael tricks her into settling for $5000.

Jake provides Sydney with refuge after learning of the attack. Amanda reveals that Jane and Chris have gone to Las Vegas, and Sydney realizes that Chris is planning to make good on his promise to marry Jane. Michael fears that Chris is after Jane's money. He follows them to Las Vegas, with Kimberly in pursuit. Chris wins big in the casino and proposes to Jane. Michael and Kimberly break up the wedding, then tie the knot themselves. Michael is fired for skipping work. Jo is hospitalized with an ulcer, and Kimberly provides comfort. Jake beats up Chris and sleeps with Sydney. Peter continues to pursue Amanda. Alison learns about Billy's involvement with Susan.

Sydney plans to leave town to avoid her problems with Chris, but Jake convinces her to stay and give their relationship a chance. Alison claims to have accepted Billy's relationship with Susan, but begins hitting the bottle. She gets into a catfight with Susan at a client party, prompting Susan to move in with Billy. Michael asks Amanda to manipulate Peter into rehiring him. Amanda agrees, provided that Michael surrender his share in the design firm. Jane promises to give Amanda 25 percent of the business if she can arrange this. Once Michael has returned to work, he backs out of the deal and tries to blackmail Amanda. Peter encourages Amanda to seek control of D&D. Matt learns that Jeffrey, an ex-lover, is back in town. He is stunned when Jeffrey reveals that he has left the Navy and is HIV positive. Jo prepares for the custody trial.

Alison is arrested for driving under the influence. She turns to Billy for comfort when Zack neglects her, but Billy reaffirms his relationship with Susan. Alison is cleared of all charges because witnesses felt that the bicyclist had been at fault. Bruce fires Amanda when he realizes that she leaked information and scuttled a possible merger. Kimberly takes Jo to the beach house and induces labor. She checks Jo into the hospital, claiming that she delivered a stillborn child. When Jo shows up at the beach house to take the baby, Kimberly insists that the boy is her child. After Jane allows Chris to deposit a $500,000 check, Chris clears out Jane's account and kidnaps Sydney.

Sarah and Terry escape serious injury because of the airbags, and Kyle and Ryan pull them to safety. Terry apologizes and grants Ryan and Megan permission to raise Sarah. Amanda tells Peter that she killed Kent, but claims that it was self defense. Lexi wants to go to the police with Eve's revelations about Amanda. Eve hits her over the head and leaves her bound and gagged in the bathtub (in her underwear). She reveals that she plans to murder Amanda and Peter. Eve tries to deflect suspicion by pretending that she is over Peter and insisting that her repressed memories were just fantasies. Dr. Shulman has Peter investigated for fraud and embezzlement, as his efforts to cover for Michael left him holding the evidence. He and Amanda plan to flee the country to escape prosecution. Kyle is thrilled to learn of Jane's pregnancy, but she discovers that Michael is the father. She tells Megan that she is leaving town. Amanda overhears this from a bathroom stall and warns Kyle as she stops by t

Reed plans to start over in Mexico after one last major drug deal. Jo knocks him overboard with a harpoon, but the boat runs out of gas. When Reed climbs on board and holds her at gunpoint, Jo is forced to shoot and kill him. She is arrested when the Coast Guard raids the boat. Alison accepts Billy's explanation about his date, but breaks up with him again when he wrongly assumes that she is moving to New York. He follows her back to Los Angeles and surprises her with a marriage proposal. Sydney presents her blackmail demands and moves in with Michael.

Michael attempts to kill Sydney during their honeymoon in the mountains of northern California, but fails twice. Matt pursues them in the hopes of preventing the crime. Michael has the chance to push Syd off a cliff, but cannot go through with it. Sydney vows that he will love her one day. A guilt-ridden Matt tells Jane that he altered Michael's blood alcohol records after the accident. Jane uses a signed confession from Matt to blackmail Michael and Sydney into staying married. Jo is haunted by visions of Reed, and is angry when she learns that Jake has decided to start a charter service on Reed's boat, the Pretty Lady. He convinces Jo to face her guilt head on, and she visits Reed's grave site to offer her forgiveness. Amanda erupts after seeing Jake comfort Jo. Alison decides that she and Billy won't sleep together again until after the wedding.

Amanda is furious when Jake skips work to hold a bedside vigil for Jo. Jo is not seriously injured, and learns that her baby was unharmed. Billy warns Alison to keep quiet about Amanda's rendezvous with Chas. Jake tracks down Hank at a pool hall and beats him up. He shows up late for dinner with Amanda, sporting a black eye, and storms out when she lambastes him for defending Jo. Michael throws Billy a bachelor party at a strip club, unaware that Sydney is the entertainment. When she sees Michael, she runs out of the club and is fired. A drunken Billy accidentally tells Jake about Amanda and Chas. Jake breaks up with Amanda, who fires Chas and vows to destroy Alison. Jake admits his feelings for Jo, and she agrees to take him back. Kimberly alters the chart of one of Michael's patients, prompting him to unwittingly commit an error that nearly kills the man. He is stripped of the chief resident position. Kimberly bullies Jane into turning over the $5000 in profits she had kept from Mich

Chris warns that his company will have to cancel his deal with Jane's firm if Michael does not sign off on it. Sydney calls Matt from the mental hospital and pleads with him to investigate Kimberly. Jane and Matt visit the beach house, where she bonds with Michael while Matt snoops. He discovers that Kimberly owns several wigs, then rips off her wig during a confrontation at the hospital. Sydney accepts a plea bargain after a scummy staff member propositions her, and is released into Jane's custody. Kimberly vows revenge against Matt. Palmer and Brittany continue their plot against Jake. Palmer turns up on Amanda's doorstep. Billy and Alison break up after she learns that he took a job at D&D without consulting her. Jo receives a surprise visit from Reed's parents. She reluctantly admits that Reed is the father of her child, and is shocked when the Carters sue her for custody.

Sydney (claiming to be someone named Miranda) hangs around the beach house and attempts to seduce Michael. Michael regains his memory when he is nearly struck by a car in a restaurant parking lot, but doesn't immediately reveal this. Michael leaves Sydney in an embarrassing situation in Jane's bedroom, prompting a suggestive remark from Chris. Michael confronts Kimberly and dares her to kill him, but she decides that she loves him too much to finish him off. Billy and Alison bicker constantly at the office. Jo extends an olive branch to the Carters, only to have them laugh in her face. Palmer tells Amanda that he cannot go to prison before paying off some debts, as he fears his creditors will harm her. He tells her of a secret safe deposit box and convinces her to withdraw $500,000. Palmer kidnaps Jake on the boat at gunpoint, and explains that he and Brittany are going to take the money and flee to Mexico. Brittany double-crosses Palmer, shooting him in the back. Jake discovers that t

Jo and Amanda argue over who is to blame for Jake's departure. Jake meets his biological father, Vince Connors. After they resolve some of their differences, Vince convinces Jake to return to Melrose. Jake apologizes for abandoning Jo, then learns from the FBI that he is to receive a large reward for assisting with the capture of Brittany. Chris continually makes unwanted advances toward Sydney, but Jane believes her sister is just trying to cause trouble. Alison gets her new secretary fired, and picks up a guy at Shooters. She seeks revenge after he leads her to believe he wants a relationship, when he was actually just looking for a one-night stand. Peter Burns, the hospital's new chief of staff, lays down the law to Michael and Kimberly.

The trial to determine custody of Jo's baby begins. The Carters' attorney raises many doubts about the character of Jo's friends and neighbors, but Jo shines on the stand. Kimberly learns that she cannot have children because of injuries suffered in the car accident. Alison gets drunk at a client party and leaves with a hard-living music business scout named Zack Phillips. Bruce suffers a heart attack while dancing at the event, and Peter suggests that Amanda use the opportunity to seize control of the agency. Alison is unable to testify on Jo's behalf because she is stoned following a night of partying with Zack. The judge awards custody of the baby to the Carters. Matt questions his relationship with Jeffrey due to the illness, but the two decide to commit to each other.

Zack encourages Alison to buy an expensive new car and skip work. Billy and Susan confront Alison during Thanksgiving dinner, but she reacts angrily and storms out. A drunken Alison tries to drive to Zack's house, but he is having a party with his friends. While distracted by her phone, she crashes into a boy on a bicycle. Kimberly explores several motherhood options, some of them illegal. She invites Jo over for Thanksgiving and convinces her to fake a miscarriage and hide her baby from the Carters. A mobster's associates begin harassing Jake. Sydney is told that Jake will suffer a serious accident unless she sleeps with the mobster's friend--Chris. Amanda leaks information about Bruce's health, while Peter prepares a takeover attempt. Matt and Jeffrey refuse to come to Thanksgiving dinner after Matt's parents ask them to hide the true nature of their relationship.

Jake and Jo see the Carters arrive at the cabin with Emily and the baby. While Jake is calling the police, Jo disobeys his wishes and confronts the Carters. Mr. Carter shoots her in the back. Mrs. Carter sneaks into Jo's hospital room in the middle of the night, and threatens to kill Austin if she does not receive custody. The judge nullifies the previous custody arrangement, and agrees with Jo's suggestion that the baby be given up for adoption. Amanda is fired after testing positive for illegal drug use. Amanda and Matt discover that Peter prescribed pills for Amanda that contained the active ingredient in marijuana. Although Amanda has no proof, Peter believes her bluff. He knocks her out and plans to kill her on the operating table. Michael pulls the scalpel away and breaks Peter's nose. Michael and Amanda interrupt a D&D meeting where Caitlin is to be appointed president, and discredit her. Alison stops Terry from drinking after he loses a playoff game. He expresses his gratitude

Jake throws Jess out of his apartment, and assaults him after his brother taunts him about Jo. Jess hires a thug to stage a robbery at Shooters and shoot Jake. Brooke convinces her father, Hayley, to offer Alison a job in Hong Kong. Billy follows Brooke's advice and persuades Alison to take the job. Alison writes a note to Billy in which she professes her love, but Brooke refuses to give it to him. Matt learns that Paul is married, but continues the relationship when Paul says that he needs Matt's help to come out. Paul's wife, Carol, threatens Matt's life. One of the alleged drug dealers reveals to Sydney that he is actually an FBI agent. He talks her into resigning so that she won't be implicated when the feds raid the design firm. Sydney is stunned to discover that the entire fiasco was a set-up engineered by Jane to oust her from the business. Kimberly seeks Amanda's friendship, then tricks her into believing that Michael is stalking her.

Jake suspects that Jess is responsible for his shooting, and is unmoved when Jess keeps Shooters open in his absence. Brooke replaces Alison's love note with a letter in which she states that long distance relationships cannot work. She also complicates Alison's efforts to get in touch with Billy. Billy proposes to Brooke along the boardwalk. Paul says that he is getting a divorce, and asks Matt to help him move out. He then stays inside the house and tells Carol that Matt is stalking him. Kimberly tries to convince everyone that Michael is stalking her, and makes Amanda believe that he vandalized her car. Kimberly trashes the beach house and scratches her own face. She calls the police, then stages a fight with Michael so that he will be arrested. When Kimberly returns to her motel room after a court hearing, a creepy man's image appears in a mirror and talks to her.

Brooke flies to Miami to investigate Amanda's past. She learns from an old newspaper article that Amanda was presumed dead years ago. She also visits the house of Amanda's ex-husband, Jack, claiming that her car has broken down. Brooke blackmails Amanda into giving her a promotion. Jack, who had swiped one of Brooke's business cards, arrives in Los Angeles. Billy learns that Alison has regained her sight. Michael pretends to have reconciled with Sydney in the hopes of driving Kimberly over the edge. Peter reveals to Syd that his concern for Kimberly stems from memories of a deceased sister who suffered a similar plight. Jane and Richard get engaged. Richard fires Jane after she publicly dishonors MacKenzie's memory, but is later forced to make her a partner. Jo is wary when Jake hires Shelly and allows her to stay at his apartment. Dr. Hobbs makes a homophobic remark about Matt to Michael. Michael encourages Matt to sue for wrongful dismissal.