The drivers try to make a cabbie out of a refugee from the '60s who hasn't quite put his life together.

Jim invites Elaine to a concert, and while there, they run into an important patron at Elaine's art gallery. The woman invites them both to a party, although Elaine is very worried that Jim will embarrass her in an event that's important to her career. Still, she doesn't quite have it in her to ask Jim not to go. At the party, Elaine's worst fears are realized with Jim's behavior, until he surprisingly wows the crowd on the piano and turns things around.

Jim is sought out by a detective, hired by his wealthy father to locate him and give him plane tickets to come visit him in Boston. Jim explains to the gang that he has been estranged from his family after dropping out of Harvard in the 1960's and changed his name from Caldwell to Ignatowski. Jim agrees to go to visit his father and brings Alex with him, who is curious about what Jim's family must be like. At his father's mansion, Jim's oddness upsets his father and they get into an argument during dinner. Jim is asked to leave, but Alex speaks to Jim's father privately to try to smooth things over. It turns out Jim's father still thinks of Jim as his favorite child, but it hurts him to see him wasting his life when he had so much potential. Jim comes in and convinces his father that he's got a happy life and doesn't need his father's money and they share a moment before Jim leaves.

Jim announces he has psychic dreams and unfortunately, he has had one about Alex, culminating in his death. The gang becomes increasingly worried about Alex, when one by one, all of the events Jim dreamed about start coming true. However, Alex continues to reject Jim's superstitions. Louie becomes so worried about Alex, he comes to Alex's apartment to take him somewhere (so the final part of Jim's dream doesn't come true, since he is to meet his doom that evening at home), but possibly to spite Louie, Alex decides to stay and tempt fate. In the end, it turns out that the doom Jim dreamed about was a girl scout knocking at Alex's door, instead of his death, but when Louie leaves, Alex actually appears very relieved that Jim's premonition was wrong.

After Latka is rejected by a snobbish, but beautiful woman at Mario's, he decides to change his image by taking some time off and studying Playboy magazines and English language tapes. When Latka reemerges from his sabbatical, he has lost his accent and now is a lounge lizard who goes by the name, Vic Ferrarri. He soon easily picks up on the woman who had rebuffed him earlier. Although amused, the cabbies become concerned about the changes Latka has gone through, since he has now lost all of his nice qualities and is constantly hitting on Elaine. Alex tells Latka/Vic off, and later Latka appears at Alex's apartment, saying that he's sorry and doesn't want to be Vic anymore. Alex works with Latka and manages to get the old Latka back, although there is a twinge in Latka's eye that suggests Vic isn't gone forever..

When Jim's father passes away and leaves him a substantial inheritance, Jim's siblings sue to have Jim declared incompetent and his inheritance placed in an account that the brother will have control of. In court, Louie and Alex speak in Jim's behalf, but to no avail. Jim later feels better when he plays a tape of ""You Are the Sunshine of My Life"" that his father left for him.

When Louie hesitates to attend his high-school reunion, Bobby offers to take his place.

Tony's sister, Monica, has returned to New York after her divorce, and Tony has set her up on a date with Alex, with hopes that they will fall in love. However, while Monica waits for Alex in the garage, she gets to talking to Jim and they hit it off famously. They begin dating, but Tony is not supportive of the relationship and asks Jim not to see her anymore. However, Tony catches Jim at Monica's apartment when he stops by for a visit. Tony is angered that they are seeing each other despite his objections and is ready to toss Jim out (literally), when Monica tells him off about his immaturity and trying to control her life. Tony then sees the light, apologizes, and seems resigned to the new relationship.

Alex and Louie compete to see who can haul in the most money during an eight-hour tour on the streets.

At Mario's, while Elaine is complaining about problems with her love life, a handsome man named Kirk approaches. Tony then plays matchmaker for Elaine and soon she and Kirk are dating happily. Kirk later tells Tony in private that he has a problem: he is interested romantically in someone else-- Tony! Tony, who is not gay but does not want to see Elaine hurt over this, tells Alex and although he doesn't really want to get involved, Alex agrees to meet Tony and Kirk at a gay bar to help smooth over the situation. Alex arrives at the bar before Tony and is nervous, but relaxes after Kirk tells him he knows Tony isn't interested and he's already gently broken things off with Elaine. Alex begins to feel more at ease, but soon he is asked to dance by a large man. Alex is then pulled on to the dance floor and is eventually chased on to the bar itself by a chorus of gay dancers and unable to escape, begins dancing on the bar, when Tony arrives..

When Latka's grandmother dies, he is pleased that she has left him her famous cookie recipe, complete with a supply of the secret ingredients. He bakes up some for the cabbies to enjoy, but the cabbies don't enjoy them. Nonetheless, Latka begins his own cookie business. In the days to come, the cabbies find that they are indeed starting to inexplicably like the cookies, and are also unusually happy and energetic. When Jim samples one, he determines that the secret ingredient is cocaine—which accounts for why everyone's behavior. Upon learning this, Alex visits Latka (busy baking cookies to fill supermarket orders) to tell him the bad news. Latka is noticeably high from the cookies, and hallucinates that Famous Amos tells him to do whatever it takes to be successful. Although Latka can no longer sell the drugged cookies, he is excited at the taste of capitalism because it means he's now a true American.

After Jim's home is destroyed by a wrecking ball, he stays with Louie, much to Louie's dismay after Jim declares him his ""best buddy."" Jim soon burns Louie's apartment after a cooking accident, though. Initially, Louie is angry, but sees an opportunity to make some money, when he learns that Jim gets a blank check from his wealthy father to reimburse Louie for his losses. Louie is not sure how much to ask for, though, since Jim says he has to call his father to okay the amount. After much lamenting over the amount, Louie settles on about $30,000 and Jim's dad okays it. Louie is overjoyed until he learns that Jim's dad was expecting the amount to be more like $200,000.

Jim buys the cabbies' hangout, oblivious to the fact that no one else hangs out there.

Jim wants the cabbies to experience the joy of giving, so he hands each of them $1000 to give away.

Latka must marry an American to avoid deportation.

Elaine spends over $200 to go to a trendy hairstylist before a special date, but the result is outrageously bad. When she expresses some disappointment, the hairstylist insults her and she leaves, crying, but still pays. Alex talks her into going back and standing up for herself, so she can get her hair fixed and her money back. That doesn't go too well, but in the end, Louie, who has followed Alex and Elaine to the hairstylist, exacts revenge on the guy by pouring a bucket of red hair dye on him.

When Elaine is offered a job as an art gallery manager in Seattle, she asks the gang for help in making a decision. The cabbies share with Elaine some stories about life changing decisions they once had to make. Tony talks about how he refused to take a dive in a major fight, even though he will likely be in trouble with the mob. In the fight, Tony learns that the other fighter has also been paid to take a dive, and the fighter does so in comic fashion. Next, Louie talks about how he became a taxi dispatcher after mercifully taking over for the kindly old dispatcher who had to take his wife to the doctor. Louie finds he likes the job and forces the old man out of the dispatcher's job into retirement. Finally, Jim tells of how he was very studious at Harvard, until his free-spirit girlfriend turned him on to hash brownies. (Part one of two)

Elaine is curious about a secret admirer who sends her love poems.

Nervous about meeting his girlfriend's parents, Louie hires Alex for moral support.

Jim picks up two men in his cab and overhear them talking about the secret to success: dynamic perfectionism. Jim takes it to heart and decides to use the technique to reach his goal, which he won't reveal to the cabbies. Soon, Jim becomes the perfect cab driver, setting company records on every shift. After a few weeks, Jim gives up, announcing that he's reached his goal and can no longer stand to work so hard. He invites the gang over to his apartment to reveal what he's been working so hard for. Upon arrival, they see that his goal was a room full of televisions, with satellites, cable, VCRs, and video games—his ticket to the global village. The gang is unimpressed at first, until each of them gets sucked into watching exciting things on the various televisions.

Latka begins exhibiting multiple personalities again: not only Vic Ferrari, but also a cowboy, and best of all, he becomes Alex! Elaine refers Latka to her psychiatrist, but meanwhile Latka is becoming even more ""Alex""-like than Alex himself: he is a better cab driver and gives better advice to the gang. Alex decides he'd better sit in on a psychiatric session with Latka and Latka/Alex is about to reveal the answer to all of Alex's problems (somehow he has figured out the secret to Alex in the midst of subconsciously becoming him), when he becomes Latka again. This leaves Alex extremely frustrated and after Latka leaves, Alex sticks around to talk to the psychiatrist further.

Elaine endures a date with Louie to end the cabbies' strike.

When Louie spies on Elaine changing in the garage bathroom, she enlists a NOW representative's help and gets Louie fired. Louie appeals to Elaine at her apartment one evening though and begs her forgiveness (and her help getting his job back). After Louie exhibits actual remorse and demonstrates through a touching story that he knows how it feels to be violated, Elaine accepts his apology (and presumably gets him rehired at the garage).

Newlyweds Latka & Samka throw a Shloogel, one of their religion's traditions. The shloogel is, in effect, a party at Mario's where they set all the gang up on blind dates. Tony is set up with Vicki, an abrasive brunette and immediately starts arguing with her. Elaine is set up with mousy Arnie, who has low self esteem. Jim is set up with actress, Marcia Wallace, who played Carol on his favorite show, Bob Newhart. Louie is set up with Judy, a pretty blind woman. Alex is set up with Susan, who seems to be his dream woman and he seems to be falling for her immediately. Despite the fact that none of the other matches seem perfect, all of them show promise by the end of the evening.

Louie is worried by the prospect of his girlfriend having her sight restored.