Gail invites Meredith in - Meredith says that she's flown down from Brisbane to surprise Jeremy. Gail asks her to sit down and is forced to break the news to her about Jeremy. Meredith starts to cry.
Jane comes in and asks Paul if she can go home early tonight. She asks Paul to pass on her sympathies to Gail. She also asks about the insurance on the caravan, but Paul says that the insurance company won't pay out.
Henry is cross that someone has cut holes in the paper. He suddenly realises that Charlene has been cutting out rental places and tells Charlene she'd never afford it. Then he twigs that she wants to move in with Scott and says that Madge will freak. He tells her to get real - they can't afford it and there aren't many jobs about. They look through the paper together and see an advert for salespeople for a new cleaner and polish called "Liquid Beauty". Henry says it's a scam, but Charlene calls them straight away!
Paul comes round to see Charlene. He gives $200 and pretends it's from the insurance company. Charlene is delighted.
Gail tells Paul what happened with Jeremy's wife. She is very upset. Paul tells Gail that she mustn't dwell on it - it's over now. Gail says she'll never forgive herself for going back to Jeremy and Paul should just say, "I told you so"
Paul has made Gail a cup of coffee while Gail continues to rant. Paul tells her not to take out her anger on Jeremy's widow. Gail says Jeremy used her so he could work on his stupid car - she even lent him money. She wants to tell Meredith the truth about her "loving" husband.
Henry, Scott and Charlene have turned up to investigate the Liquid Beauty scheme. They go into an office and are shown some samples of the product - apparently it's a completely different kind of product and they could make $600 a week. The woman says there are no hidden catches, but they'll have to buy some stock to get things off the ground - $500 in cash. Charlene says they can't afford that, but the woman gives them some pamphlets anyway.
Gail is still ranting and Paul is trying to get her to calm down. Meredith comes in and Paul sits her down in the living room. Meredith says she should get on with making the funeral arrangements - it's her responsibility as Jeremy's wife. Gail is about to tell her about Jeremy's antics, but Paul interrupts and offers Meredith a lift.
Charlene and Henry are messing about when Scott comes in. Apparently Madge is still having a heart-to-heart with Helen about Harold. Scott wishes they could raise the money for Liquid Beauty. They start to pool their resources, including the "insurance" money from Paul. Scott isn't sure - they're still $100 short. Charlene suggests asking Jane.
Charlene, Scott and Henry come to see Jane. They ask her if she'd like to earn $600 extra per week.
Meredith has realised who Gail is - Jeremy's ex-wife. Paul says he's made arrangements for Meredith to stay at Lassiter's. Gail says she and Meredith need to have a talk, but Paul says Meredith has had enough for one day. Meredith tells Gail and Paul that she is pregnant - she wanted Jeremy to be the first to know.
Charlene and Scott are telling Jane all about Liquid Beauty. She agrees to give them the remaining $100.
Meredith is telling Paul and Gail that she's happy about the baby and hopes it's a boy so it'll grow up to be just like Jeremy(!) Meredith wonders why Jeremy was staying with Gail - she suspects that Jeremy still cared for Gail. She wants to know if anything was going on between them. Gail says that there wasn't - she says that all Jeremy did was talk about Meredith and how much he was looking forward to getting home again. Paul looks at Gail in admiration.
Charlene is counting out the $500 in cash. She's optimistic about their forthcoming success. Henry isn't so sure that Liquid Beauty will work, but Charlene brushes this off - she says that Henry can sell anything(!)
Gail suggests to Meredith that she stays with her instead of going to Lassiter's. Paul looks at Gail even more admiringly(!) When Meredith has gone, Paul tells Gail that he's proud of her. Paul goes to leave and on his way out, he says he'll be in touch with Mr Udigawa in the morning. But Gail says she's happy to go through with the engagement. And she doesn't mind getting married too if that's what he wants. She says they can have a contract drawn up. She won't change her mind - she married for love once, but she won't do it again - she's tired of being hurt. Marrying Paul would be a kind of insurance.