On her wedding day, Meg Cummings finds out that her fiancée Tim Truman had an affair with her best friend. She takes the car and runs away from her wedding, leaving Ludlow, Kansas. Her new destination is Sunset Beach, a town on the coast. Now she wants to find a man with who she has been e-mailing. Her first stop is at Elaine's Waffle Shop. There Elaine tells her the legend of Sunset Beach. If you meet someone on a beach exactly at time when the sun goes down and the moon shines bright. Meg goes to the beach, and at the same time there was Ben. A young homeless girl Tiffany spent the nights on the beach. A young man named Mark showed Tiffany an abandoned house, where she can stay hidden from hooligans and police. Meg tries to catch Tiffany, who decided to steal Meg's bag. She haunts her to the pier and falls down from the pier into the ocean.

Cole and a drunk Olivia talk in the cave, and he suggests she should stop drinking as a way to deal with her life problems. They leave to a seedy motel, where they continue talking about life. Cole spots Olivia's necklace and then proceeds to have sex with her. Caitlin tries to have sex with Tim, but he refuses to do so, and then later changes his mind, but then Caitlin refuses. Meg explains to Mark about Ben actually being SB, and she says she'll keep it a secret. Meg and Ben pretend to be lovers, to cover for Annie, whom Gregory almost spotted at Ben's place. Eddie kidnaps Paula and she struggles to let herself free, but she can't. She doesn't know who kidnapped her. Ricardo is tempted to sleep with Gabi and she starts to undress him, but he eventually changes his mind and goes to find Paula. Eddie takes a gun, points it at Paula, and shoots.

Ben and Meg help Annie by distracting Ricardo to a wrong clue. Bette is on the memorial service for Al, and she has no idea that Annie is trapped inside Al's coffin. At home, Meg comforts Bette. Bette tells her that Al's widow wouldn't pay for the funeral, so the coffin is going to the crematorium. Gregory catches Caitlin and Cole at Elaine's Waffle Shop, and Caitlin tells him that she wants him to leave them alone. Bette tells Olivia that they have a big problem coming. Ben returns to the center and finds Al's body sitting in the memorial service, so he finally realizes that Annie must be in the coffin. Ben realizes that the coffin isn't on the way to New Orleans, but to the crematorium. Meanwhile, Annie believes that her coffin is being sent to New Orleans. Little does she know that the coffin is being inserted into the crematorium place.

Ricardo checks Ralph's list of crimes, while Eddie prepares to ambush Ralph, who is, at the time, preparing to tattoo and rape Paula. Cole covers his intrusion by pretending to want to continue his affair with Olivia. She realizes that Cole wants to steal her jewels. Caitlin knocks on the bedroom door as they're making love. A bloody coat is delivered to Meg, who then talks about it with Annie and Ben. Annie tells them that she was at her father's room on the night he was killed, but she doesn't remember what happened exactly.

Olivia tells Sean to incriminate Annie. Sean tells Ricardo that Annie murdered Del. Later, Annie takes a polygraph test so she would prove her innocence. But as the test passes, it all looks like Annie will fail on it. Ricardo gives Paula a ring, but she gets angry after she finds out that his ex-girlfriend picked it. A strange man bursts into Michael's room. Jaleen runs to him and calls him Uncle Clyde. He tries to kidnap her by setting a gun on Casey's head. Michael breaks a bottle over Clyde's head. They take Clyde to Michael's garage and tie him up with a tape.

Ricardo and Eddie finally catch Myers, and Eddie kills Ralph before he can connect him to Paula's abduction. Ben and Annie realize that Annie didn't kill her father, but she only found his dead body on the same night he was killed. Tim lurks around Ben's house as Ben and Meg talk to Annie. Bette and Annie discuss about Deschanel jewels. Ricardo questions Tiffany about Paula. Meanwhile, Paula, unable to continue trying to escape, succumbs to the gas inside the van.

Annie arrives at the hospital very upset. Del dies. Bette finds Del's wallet in Annie's purse. Paula moves into Ricardo's apartment. After he comes home, he tells her that he was just joking. Bette calls Annie's mother Madeleine, but she does not answers. She leaves a message on her answer machine telling her that Del died, so Annie in now very lonely. Mark warns Tiffany to stay away from Ben, but she won't listen. After Ben finds Tiffany, she baches him in the head with a vase.

Ricardo and Eddie are disappointed to find the warehouse empty, and Ricardo is suspicious to realize that the kidnapper used police handcuffs to capture Paula. Ralph finishes his crime on Paula. Cole exits as Caitlin realizes that Olivia must be having an affair with someone. Gregory confronts Olivia about having an affair. Ben is convinced that Annie didn't kill Del, although Annie believes she must have. Bette is shocked to learn that Annie is alive.

Ricardo fights with Elaine. Tim informs Gregory about Olivia's disappearance. Caitlin apologizes to Tim about her behavior in the limo. Cole steals the necklace from Olivia. Annie dreams about bloody hands again. Ben tells her that her nightmares will probably stop when the real murderer is revealed. Meg realizes that Annie thinks about Meg as her competition. Ben and Meg continue faking a relationship to fool Gregory. Cole wants to know more about the Deschanel legend. Caitlin and Olivia discuss about Cole's other woman. Caitlin runs into Cole and refuses to talk to him. Paula demands the kidnapper to release her. Eddie kisses her roughly. He then wonders if Paula might have recognized him. Ricardo almost catches Eddie in his apartment. He finds Paula's necklace on the floor, and then hears a train whistle on the tape he received. Paula panics when Eddie starts to rip her shit apart.

Ricardo finds Del's driving license in Annie's fireplace. Annie escapes from the bathroom window. Meg is disappointed to realize that Casey isn't SB. She thinks about leaving Sunset Beach and going back to Kansas, but Casey begs her to stay. Gregory finds out that Sean is expelled from school. Ben is on the pier when Annie shows up. She tells him that she needs some help. She takes a gun and threatens to shoot him unless he listens to her.

Annie comes to Ben's house in disguise and reveals herself as alive. Annie explains that a worker at the crematorium rescued her and she bribed the worker to keep quiet. Ben wants to use her "death" as a way to catch Del's real murderer. Mark reveals to Meg that Ben is actually "SB," and she goes to Ben's place to reveal her true identity, but she comes upon a woman in his shower. Ricardo proposes to Paula. Caitlin is overjoyed when Cole takes her to a cave that is prepared for a romantic dinner. Cole won't allow himself to get romantically entangled and instead tries to focus on the reason why he came to town.

Gregory explains to Tim that his duties as a chauffeur will be expanded, as he'll use him for more jobs. Annie intentionally misleads Meg before she can confront Ben about being her Internet chatter SB. Ricardo finally proposes Paula, and she says "yes", much to Eddie's surprise.

Meg sends an e-mail to SB revealing her identity as Dorothy. At Ben's place, Annie opens Ben's laptop when the modem wires. Paula notices that Ricardo is spending a lot of time on the Douglas murder case, so he is not paying too much attention to her. They divide their duties: Paula will go for a window-shopping for wedding rings and Ricardo goes to Java Web to look over possible wedding sites. In the meantime, Eddie goes through Del Douglas's briefcase and takes a diamond brooch heading to get the diamond appraised.

Gregory gives Sean a sports car. Although Gregory is convinced that this could bring their bond back, Sean doesn't want to have anything to do with his father. Ben gives Sean a job at Java Web. Bette and Al Kennedy have too much fun in the hot tub, which results with Al's accidental death. Vanessa starts investigating Michael's past. Michael meets an old friend, but doesn't know that he's connected to Clyde. Ricardo and Ben almost get into a fight, but in order to stay on the Douglas case, Ricardo decides not to pursue the fight. However, Chief Harris pulls him off the case.

Caitlin decides to separate from Cole after she finds out that some Contessa made a suicide because of some "gigolo". Gregory announces to Olivia that his only intention is to protect his daughter. Cole informs Caitlin that he is in love with a sophisticated woman in London. Caitlin is disappointed and after she runs out of her house, Tim persuades Caitlin to let him take her home. Later, at the same cave, a drunk Olivia turns up and wishes for "some of that Deschanel magic" as Cole enters the cave behind her. Ricardo still wants to elope with Paula, so he keeps on pressing her. Eddie does his best to make his new plan even more better. He goes to Ricardo's house when he's not there and kidnaps Paula. Meg talks to confused Ben about his deception. Ben realizes that Annie lied to Meg about the nature of their relationship. Meg tells Annie that Ben probably does not wants to be more than friend with Annie because he cannot trust her. Ben agrees with her.

Rae receives a package from her family containing a few family heirlooms. Casey suggests Rae should reveal that they are "getting a divorce." Annie tries to pursue Bette to talk about the Deschanel jewels, but Bette continues trying to avoid the subject. Ricardo and Eddie save Paula from near death. Meg and Ben are still pretending to be together, and it seems like Ben isn't uncomfortable playing at all. Olivia surprises Cole at the hotel wearing nothing but jewels on her body. Paula is rushed to the hospital.

Olivia promises to run away with Del. Ricardo suggests Paula should move in with him. Vanessa wants Ricardo to investigate the apartment break-in, but there isn't enough case to begin with. Meg, Michael and Mark want to rent a room at Casey and Rae's house. Casey and Rae kiss. Meg meets Ben on the beach. Ben is still having flashbacks about his dead wife. Tim tries to convince Meg that his relationship with Connie is over, but Meg refuses to listen to his excuses. Annie and Del fight, and Annie comments on wanting to kill him. Tiffany tries to seduce Ben and when he refuses, she suffers a small accident. A strange woman arrives at Del's hotel room, opens the door and shoots him. Sean hears the gunshot and opens the door, seeing a woman in a black robe leaving Del's room.

Annie tries to escape. Ricardo questions Olivia about the night of Del's murder and she finds herself confused by all the questions. Meg tells Ben she wants to help Annie. Gregory gives Tim a job -- as Olivia's chauffeur, after Olivia loses her driving license by being caught drinking. Jaleen recognizes Michael's friend Jo-Jo as her daddy. Annie, who is still in the coffin, believes to be transferred to New Orleans, but she doesn't know that the coffin has instead been shipped to the crematorium.

Olivia and Bette are shocked to find out that their secret from years behind might be revealed, but they both vow not to say anything to Elaine. Meg tells Ben that Al's coffin is in the crematorium. After seeing Ricardo, Meg decides to tell him the truth. Gregory lies to Caitlin about trying to cope with the fact that she has a boyfriend. He continues trying to manipulate her life. Elaine shares her beliefs with Olivia and Bette - she is convinced that Armando Deschanel's son is in the town. Ben, Ricardo, Paula and Meg are shocked to find out that Annie's coffin is no longer in one piece. Ben hears Annie's screams in his head.

Annie watches her own memorial service, and is touched by Ben's speech. Gregory finds out that Cole is a jewel thief and he forbids Caitlin to see him again. Olivia, who believes that Annie stole the Deschanel jewels from Del, tells Bette to return them to Olivia. Bette and Olivia search Annie's house for the jewels, to no avail.

Mark emcees the Valentine's Day costume dance at the Deep, where several near-couples can't seem to connect. Ben makes a decision about helping Annie: he will help her to get out of the country before anyone discovers that she is still alive and get her to prison. Cole tells Caitlin that he doesn't want to be her first lover.

After falling down into the ocean, Meg has been rescued by a young lifeguard Casey. He drives her to the hospital where he meets a young and pretty female doctor Rae Chang. They have a quarrel, but there was nothing but sympathy between them. After stealing Meg's backpack, Tiffany looks into it. There she finds all e-mails that Meg received from SB and sent to him. Meg encounters Ben at his internet cafe, where she tries to find SB. She receives a message from SB, he asks her not to come to Sunset Beach. Ricardo gets promoted into a detective. Paula is not too much happy about Ricardo's promotion. Ricardo and Paula have a hard talk about her pregnancy. But there were no reasons to worry about. Ben keeps on having flashbacks about his dead wife Maria. Annie needs to find the money to buy a boat. Meg calls her mother. She says that she is still looking for SB. Meg notices something about Casey that makes her think he's SB. Annie's father Del suddenly appears at her apartment.

Sean talks with Olivia and tells her that he saw her with the black coat the night Del was killed. She tells him to not tell anyone about it. Eddie calls Olivia and tells her that he has her pictures when she was at pier dropping a gun into the water. He tells her that he wants money, or he will give the pictures to Ricardo. Paula and Ricardo take Sean to the station to ID the suspect from a line-up. Two thugs threaten to kill Vanessa, but Michael rescues her in time. At the station, Paula sees Ricardo hugging his old girlfriend Amy. She gets jealous and tells Ricardo that she is going out to dinner with Eddie.

Meg and Ben do their best to help Annie get out of prison by going to a travel agency. Ben discovers that Del and Olivia were supposed to leave Sunset Beach on the day when Del was murdered. Eddie does his best to ensure that Annie doesn't leave alive. On the way to country jail, a driver doesn't listen to Ricardo's demands through the radio, and tries to rape Annie. Later, after being rescued, Annie is returned back to the old cell. Casey tells to Rae's father that he is studying law over the Internet. Ben thinks that Gregory killed Del.

Eddie tells Ricardo that he thinks Annie murdered Del. On the tape, Annie tells Del that she wants to kill him. Eddie thinks it's enough proof, but Ricardo doesn't agree. Gregory finds Olivia drunk and asks her if she had an affair with Del. Paula wants to break up with Ricardo. Annie goes to Ben's and begs him for an alibi. Reluctantly, he agrees. Ben wants Gregory to help Annie, but Ricardo shows up and takes Annie to the police station for questioning. Ricardo tells Gregory that they found Olivia's hair on Del's pillow. Olivia pulls a gun out of her drawer.