"Amanda woke up to find Jamie going through her purse. She confronted him and accused him of looking for the drugs that were allegedly given to Krystal and Babe at the New Year's party the previous night. Amanda raves to him about how she is always held responsible whenever Babe wakes up naked in somebody's bed. Jamie denied the allegations of searching her purse for drugs and instead told her he was putting something IN her purse. Amanda finds a small jewelry box which contained earrings and a note wishing her a happy New Year. Amanda thanked Jamie and apologized for jumping to conclusions. She told Jamie that this 2006 is going to be the perfect year.
JR awoke to find a scantily clad Babe leaning over him. Babe made a point of calling herself a whore and a skanky slut while she fondled and kissed him. Babe suddenly pulled away from JR mid-tease when he began returning her affection and instead told him off for not believing her about waking up drugged and naked in Josh's bed. She then pulled out a piece of paper which contained test results from the hospital proving that she and Krystal had both in fact been drugged the previous night. Jamie showed up and caught her and JR at each other's throats once again. After Babe stormed out, Jamie accused JR of being too hard on Babe. Jamie also told JR that he had noticed that he had seemed very happy at the New Year party the prior night with Babe. JR denied the allegation and held to his belief that Babe was a slut and that she was just playing him. He then told Jamie that he would be happy only when everybody stopped playing him, including Jamie. He said that he didn't need Jamie's forced brotherly concern. Jamie went on to tell JR that he had not found any drugs in Amanda's purse when he had checked it that morning. After Jamie left, JR found himself thinking of Babe in his bed. At the same time, Babe was taking a walk on the waterfront reminiscing of her and JR dancing together. Babe then questioned herself aloud, "What's wrong with you Babe? What are you doing?" to which Bianca (also beachcombing) replied, "Good question. Maybe I can help you figure it out."
Following their mutual declarations of love for each other, Zach and Kendall spent some quality time together at one of Zach's Casino which is located on the beach. At Kendall's request, Zach attempted to build a sand castle for her. Bianca showed up and surprised them both. Zach excused himself and went inside to greet Myrtle who had driven out there with Bianca. Kendall admitted to Bianca that she and Zach had declared their love to each other and she thanked Bianca for pushing her to share her feelings with Zach. Kendall described how truly happy she felt and how she couldn't ever remember being as happy and as in love as she is now. Meanwhile, Zach and Myrtle shared a drink and toasted to the happy occasion.
Erica awoke with a start following a nightmare in which Dr. Madden was leaning over her with a surgical mask and uttering her name over-and-over. Tad had just come in when he heard Erica scream and sit up. He showed Erica the picture of a small girl that he had taken from Dr. Madden's office and asked her if she knew who it might be. Erica claimed that the little girl in the picture was her. She said that her mother had taken the picture of her holding her puppy. Tad told Erica that he thought it was possible (based on her bad dream of Dr. Madden in scrubs and a surgical mask) that Erica had in fact been treated previously by him and she just doesn't remember, perhaps because she was too young to remember. As Tad left to go confront Dr. Madden, he gave Erica his word that he would find out the mystery surrounding Dr. Madden.
Meanwhile, at the clinic, Dr. Madden summoned Di to come into his office. He then accused her of breaking into his office and going through his files the previous night. Di tried to cover and said that she had come in to assist the cleaning crew to make sure that they got everything properly dusted before he returned from a business trip. Dr. Madden did not believe her until Tad interrupted and claimed he was the one who had shuffled through the doctor's files the previous evening. To protect Di's job at the clinic, Tad informed Dr. Madden that it was it was him that had broken into the doctor's office the previous evening and that he had acted strictly solo. He further assured Dr. Madden that he would not be in cahoots with Di if his life depended on it as Di was nothing but a con artist who had posed as his dead wife for the past year. Di in turn convinced Dr. Madden that she detested Tad which resulted in her keeping her job at the clinic and enabling her to spy for Tad in the future. After Di was excused, Tad confronted Dr. Madden admitting that Erica had filled him in on the doctor's obsessive feelings about her. Tad went on to question him about the picture which he had found in his office of Erica as a small child. Tad then pulled out a file he had also lifted from Dr. Madden's office marked "Martin Family" suggesting that as a result of all the information contained in the file, the good doctor knew more about Tad's family then even Tad himself was aware of.
Meanwhile, back at New Beginnings, Erica was informed by Josh that somebody had erased an interview that she had done previously with Geraldo. He denied knowing who was responsible but assured her that he would find out who it was. Josh then informed her that Geraldo had agreed to re-shoot the interview and that he had a limousine ready to take her to meet with Geraldo. As Erica was getting ready to leave, she became outraged when she caught a glimpse of the front page of the Exposer in which the headline read, "Erica Kane's New Beginning with the Bottle." Josh took the paper from her, promising her he would find out who had written the lies about her but that she had to leave now or she was going to be late for the re-shoot. He then handed Erica her coat and purse, lifting her cell phone without her noticing. He assured her that Geraldo would be waiting for her and that he had also sent a camera crew that would be there when she arrived. Following Erica's departure, Amanda confronted Josh and let on that she had witnessed him take Erica's cell phone and accused him of trying to sabotage their boss. When Erica arrived at the location she found herself in a warehouse and quickly found that she was in the wrong place as there was no sign of anyone around. She quickly exited the warehouse to tell her driver that they were at the wrong location only to find her driver pulling away. She attempted to flag him down and prevent him from leaving to no avail."
- Soap Central