Joe is still very down - and he's still having nightmares about the incident. He keeps thinking that a hit and run is exactly how Nolene died and now he's so mixed up in his dreams.
Melanie tries to reassure him and tell him that it's not his guilt to feel - he wasn't the one who hit the woman.
Harold is singing "Onward Christian Soldiers" in the bathroom when Toby comes in. He sneaks in and takes a picture of Harold! Harold rushes out, covered in shaving cream, and tells Toby off.
Dorothy calls round, much to Harold's chagrin as he's half-naked wearing a towel. She tells him that Toby's project is titled "The Elderly In Society"!
Doug and Pam are talking about Joe. Pam thinks it's very possible the police will charge him - it looks bad, even though he didn't do it. Doug wants to put a bet on this afternoon and Pam isn't too chuffed. But when she's out of the room, he finds the bank book and opens it.
Joe is looking through the funeral column - the funeral of the woman is today. He wonders if he should send flowers or go round and see the family. Melanie doesn't think it's a good idea.
Just then the phone rings and it's the police. They tell Joe that they want him to come down to the station. Now Joe knows it can't be good news, or they would have told him on the phone.
Doug is still looking through the bank book. He's appalled that Pam has her own bank account - they've always had a joint account. She tells him she's been trying to keep some money aside in case they get into financial strife again. He's upset that she didn't tell him about it and feels that she doesn't trust him.
Toby is still interviewing Harold for his project and Harold is rather irritable by this stage(!)
Melanie and Caroline are having breakfast at a table. Melanie is worried about Joe - he's still not back from the police station.
Pam is getting her mail for the letterbox when she sees Dorothy. She tells Pam that she's doing OK, but she's a bit tired after the radiotherapy. She tells Pam that she's made a decision - she's going to tell the older students about her operation. Rumours are already going around, so it's about time. She asks Pam to come along and talk to the children about it with her and she agrees.
Pam tells Dorothy about Doug being upset about the extra bank account. Apparently Pam has offended his masculine pride(!) but Dorothy thinks she should stick to her guns.
Melanie comes in - she still hasn't heard from Joe. Harold tells her to give Toby a message that he wants to see his project before he gives it in.
Just then, Joe comes in. The police have cleared him! Apparently they found traces of paint on the clothes of the woman and they don't match Joe's ute. Harold tells Joe seriously that he's behaved in a morally excellent manner throughout the whole business and has set an really good example for Toby. He tells Joe that he's a fine man. Joe is a bit embarrassed but thanks Harold and Melanie for their support.
Doug is still being stroppy about the bank book. Pam sits him down and tells him that she was just trying to save up a nest egg.
PAM: Doug, you're being childish. I think I'm entitled to have a bank account if I want one!
Doug says he'll open a private account too. He storms off to the pub.
Number 24 - evening
Harold is telling Madge the good news about Joe on the phone. Toby comes round with his finished project. He tells Harold that his project is not about the elderly - it's actually about a hero, and he's chosen to do Harold. Harold is surprised and very touched. Toby goes on to explain that Harold is a hero because all of the things he's done - like saving his life on cub camp, winning the pool competition etc.
TOBY: I've written here that you're not my real grandad, but you treat me as if you are. And as far as I'm concerned, you're the best granddad in the world.
Harold is quite overcome!
Michael has come to visit Helen who has had her operation that afternoon. Apparently the op went very well and she'll be fully mobile again soon. Michael says they'll be able to go out dancing soon(!)
Dorothy comes in with some flowers and interrupts them. Helen introduces Michael.
Pam is in a bad mood when Doug comes back from the pub. He apologises for being cranky earlier. She isn't impressed that he's drunk - he'll be snoring his head off. He says he'll sleep on the couch.
Harold, Joe and Melanie have been watching a film and Harold has fallen asleep. They wake him up and good-naturedly offer him a cup of tea. Harold tells Melanie how chuffed he is about Toby's hero project - he really did feel on top of the world.
Just then, the phone rings and Joe answers it - it's some crank accusing him of murder, saying he wouldn't get away with it.