Lily walks in on Ted taking down the Christmas tree and offers her help. Gina, with baby Capwell, enters Lionel's office and sets off the alarm. Lionel, awakened by the alarm, grabs a golf club and heads inside to protect his property. He finds Gina cowering behind a screen. Lionel tells her that she needs to see a doctor because she is not acting rationally. Gina says that she cannot afford to see a shrink, so Lionel offers to pick up the bill.

Suzanne is in a rotten mood in the morning. She confides in Katrina that she can't help but feel Eden's presence whenever she is with Cruz. Mason asks Cassie if she had contacted Warren after the trial. She snaps at him to stop throwing Warren's at her every time they have a conversation. Angela buys Warren's rival newspaper, The Santa Barbara Bulletin for him as a victory present. Warren is grateful, but is weary of the underlying commitment within. Lionel is horrified at his busted up security alarm, the handy work of Gina. Lily tells him that Gina has been seeing the doctor and he has prescribed some tranquilizers.

Santana is showing her designs to Kelly for approval. Kelly tells Santana that she really does not care about the decorations and tells her to take it up with C.C. Cruz track Suzanne down to the Oasis. He asks her what the problem was but she says nothing. Kelly invites David to dinner to discuss business. Sophia sees Cruz and Suzanne talking affectionately and feels uncomfortable. Suzanne invites Cruz over for dinner.

David tells Kelly to stay out of his personal life. He tells her that he let Angela control all aspects of his life and does not intend to make the same mistake again. Cassie is drunk. She tells Mason that she wants to tell Warren the news herself. She adds that she will have to tell Julia what an evil and manipulative man he has been in hopes that Julia will leave him. She says that she will enjoy watching him suffer.

Cassie agonizes over how she will break the news to Warren. Ted and Kelly join Sophia for breakfast. Kelly tells Ted about the embarrassing run in she had with David the night before. Mason shows up at Julia's to take her out for breakfast. Katrina questions Suzanne about her night with Cruz, but she evades the question and buries herself in work. Mason and Julia arrive at the Oasis. Mason goes over to talk to Cassie. She is still hostile towards him.

C.C. invites Santana to a prestigious club for dinner, much to Rosa's strong objections. Lily tracks Lionel down to the club and asks him to talk Gina into taking her medication. Gina arrives shortly and invites them to Channing's christening. Both Lily and Lionel say that they will not accept unless she invites C.C. Rosa expresses her concern over C.C.'s invitation.

Cassie goes to Warren's office under the pretense of looking for Lionel. Warren is very formal towards her. She asks if there was any tension between him and Lionel, and when she receives a negative answer, she realizes that her message was not as effective as she had hoped. C.C. makes a huge scene at the club regarding their treatment of Santana. He storms out, vowing to close the club down. David, Lionel and Sophia have witnessed C.C.'s whole tirade. Sophia's expression shows signs of hurt feelings, but tries to hide it by being proud of C.C.

A black tie benefit is being thrown in Cruz's honor at the Oasis and Suzanne is all upset because she has to cover the event and interview Cruz. Katrina offers to trade places, but Suzanne declines siting that it would compromise her professionalism. Rafael asks Cruz about his problem with Suzanne. He tells his son not to give up on her so easily. Ted and Kelly head over to invite Gina to the party, but Lily tells them that Gina is spending quality time with Channing.

Gina, her normal self again, shows Channing off to Sophia at the benefit. At her table, Sophia receives a bottle of champagne and a gift from an anonymous person. Warren ponders over the birth certificate. He tells Angela that he wants to go to the party to find Lionel. Ted asks Lily why she is staying in town. He also asks her to tell him the truth about Frankie. Lily says that she only met Frankie a few times. Frankie tells Lily that his target is Lionel.

Mason's guilt over hurting Cassie manifests itself as nightmares. In it, Cassie's proclamations of gloom and doom over his relationship with Julia hit just the right mark. Kelly, Ted and Cruz unwind after the party. Cassie comes over, drunk, and oozes venom about Mason to them. Lily is at Dash's office, severely beat up. When Dash questions her about it, she maintains that she fell down a flight of stairs. Dash manages to wear her down and she admits that she messed up somebody's deal and paid the price for it.

Lionel tells Gina to keep her duties strictly professional, but stubborn old Gina goes through his personal mail and is intrigued by the contents within. Rafael tries to convince Suzanne to give Cruz another chance. He tells her that no matter what she does to change her physical appearance, it will not change her heart. Suzanne gets irritated with Rafael and they end off on an unpleasant note.

Craig has commandeered the transport and its passengers. He ties the guards up and leaves them in the middle of nowhere as he heads back to Santa Barbara. Gina catches Lily eavesdropping on Ted's conversation with Dash. She confronts Lily about it and Lily tells her to stay out of her personal life. Cassie is anxiously awaiting Warren's arrival. Mason comes by, but she is not the mood and she tells him to leave.

Craig is forced to kidnap Kelly after realizing that there's nothing else he can do. Sophia, Mason and Cruz are worried about Kelly. Warren is shocked to find out that Lionel isn't his biological father. He is crushed by the fact that Lionel never said anything, and he questions him about who is his father, but Lionel doesn't know because Augusta never told him.

C.C. is shocked to learn that Craig took Kelly as a hostage. Mason blames C.C. for the entire situation because C.C. always encouraged Craig. Rosa is skeptical over Santana. Rafael tells C.C. that he expects him to marry Santana.

Kelly manages to free herself from Craig and rushes to Gina. Craig is starting to lose his mind by threatening both women. Lily isn't satisfied with her life with Ted. Angela questions Warren about his feelings for Cassandra.

Cruz finally finds Craig and then offers to become his hostage in exchange for Kelly and Gina's security. Hunt accepts the offer, but refuses to let Kelly go. Mason and Julia question their love life, but Julia remains trying not to get too much involved.

Katrina and Dash's relationship goes forward when Katrina manages to publish an article on Dash and numerous companies offer to give him a job. Dash realizes that the jobs are far away from Santa Barbara, but to please Katrina, he doesn't say anything to her. Craig bounds Cruz and Kelly. C.C. is ready to pay the ransom. With Mason's help, C.C. manages to find Craig and put his plan in motion.

Cruz manages to free the hostages and then goes on a hunt after Craig. They start shooting, and Craig provokes Cruz by mentioning Eden. Cruz accidentally fires a shot at the pilot of the plane. Cassandra appears suddenly and manages to convince Craig to surrender. Katrina learns about Dash's job offer and then she persuades him to take it. **Last appearance of John Callahan (Craig Hunt) and Timothy Gibbs (Dash Nichols)

Mason tries to persuade Julia to marry him, and although she expresses her love for him, she doesn't want to get married. Cassandra and Warren talk about their love and the possibility of being together now that Warren knows the truth about his paternity. Kelly has to face the flashbacks of being kidnapped by Craig. Katrina is having hard time dealing with Dash's departure. Ted offers her support from the entire Capwell family.

Lily and Ted have a talk and come to a conclusion that they should be only friends. Angela is keen on opening a gallery with Warren's photos. Warren is determined to find out who knew about his paternity before him. Cassandra decides to fight for their love, so she admits to Warren that she knew, and they end up fighting. C.C. wants to see his son, but Gina refuses to let him see Brandon, and C.C. is convinced that Lionel told Gina to act that way, so he confronts Lionel about it.

C.C. asks Katrina to move back into the Capwell mansion and she agrees, but he has to promise not to meddle in her life anymore. Cruz has an important talk with Suzanne. Sophia explains to Kelly why she didn't tell her about the fact that Eden was the one who shot her. Cruz advises Cassandra to tell Warren about Mason.

Katrina moves back into the Capwell mansion, and Lily isn't glad to see her there, so she tries to draw Ted's attention. Julia agrees to try to be with Mason again, but only if he proves that he's a changed man. Cassandra is about to confess to Warren about Mason, but Mason interrupts her in the nick of time. He convinces Cassie not to say anything because Warren might say something to Julia and their relationship might fail again. Angela works on opening the gallery with Warren's photos. Lily invites C.C. to see his son, much to Gina's annoyance.

Mason asks Cassandra not to say anything to Warren, but she is reluctant to accept his plea, and she gives him limited time to clear his name. Mason finally gets to tell the truth to Warren, who is crushed by his words. Lionel tries to find a husband for Gina with the help of a partnership agency. Warren's photos are a huge success in the opening of the gallery.

Warren refuses to let Mason's confession hurt him, and he's keen on redirecting all his energy on finding his biological father. Mason is troubled by Warren's behavior and he dreams of Warren killing him. Julia wonders if she wants to marry Mason or not. Santana wants to leave Santa Barbara when C.C. doesn't seem to support their relationship, but he tries to convince her otherwise. Lily receives a mysterious letter.

Cassandra wants to start a new life with Warren, but he needs time to think about their future and the consequence of Mason's confession. Ted learns that Lily asked Mason for a few free days so she'd be able to visit Las Vegas. Ted follows her to the train, where Lily meets with Ray, an old friend. Warren asks Cruz to help him find his biological father. Cruz receives a letter from Eden.