Doug's hotel room
Doug and Jill are wearing bath robes (yuk). Pam has rung Doug to make up with him. Jim cancelled dinner, so they didn't go out after all. She tells Doug that she loves him. Doug puts the phone down and looks very guilty. Jill says she won't tell Pam anything.
Toby is looking at the horses for today. Phoebe offers Toby some pancakes but he doesn't want them. They get chatting and Phoebe tells him that Todd is there with her all the time. Dorothy overhears. When Phoebe has gone, Toby tells Dorothy that she should stop Phoebe going to the cemetery.
Michael offers to lend Rick $60 again. Rick tells him to get lost.
Michael calls Toby over. Toby says he hasn't got the name of the horse yes, and asks if they can go 50- 50. Michael refuses and says he might give him a $2 tip!
Dorothy invites Phoebe to come to the park, but she's going to the hospital to book a bed for when the baby arrives. Dorothy says her "mystery man" is having a good influence on her. Phoebe is irritated and tells Dorothy not to call him that.
Toby comes in looking downcast. He tells Phoebe he's being blackmailed by someone. Phoebe says he should just own up - what's worse, a week of being grounded or getting pushed around by a bully?
Lou gives Madge a box with two wedding rings in it, saying his mate imports jewellery. Lou wants to set a date, but Madge isn't keen.
LOU: Madge, every time I want to talk about us getting married, you give me the run- around. Now, what is the problem? You do love me, don't you?
MADGE: Oh, of course I love do.
LOU: Then what?
MADGE: Look...could we talk about it later?
LOU: No, I want to know, once and for all, when we're getting married.
But they are interrupted by Toby. Madge goes to get ready for work and Toby tells him to come back after school. Toby looks downcast.
Rick hears Debbie talking about the dance party, so he asks Michael to borrow the $60 after all. Michael airily tells him he has other plans for the money now.
Dorothy comes along and assigns Michael a locker as his is broken. Phoebe is horrified - the locker belonged to Todd. Phoebe says she'll use Todd's and Michael can have her old one.
Michael approaches Toby. Toby gives him the tip on the horse which is 10/1.
Lou is suggesting dates for his and Madge's wedding, but she still doesn't want to talk about it. Jim comes in and moans about his love life. Lou brings up that Pam and Doug seem to be going through a rocky patch and Jim looks interested.
Pam has brought an article around for Jim, but he's not there. Lou pops round for a chat and says he's just seen Jim at the Waterhole. Pam says she'll take the article down to him.
When she's gone, Lou and Helen think Pam and Jim have feelings for each other.
Madge is having a cup of tea with Helen. Madge tells her that she does want to marry Lou - but she quite likes being engaged as you're not defined by marriage. But she will do something about it soon.
Doug has just arrived back from the conference. He tells Lou that he's in trouble - in a real hole.
DOUG: Jill Weir turned up out of the blue.
DOUG: ... I know, I know, I'm two- timing rat. Gee, I never felt so sick about anything in my life.
LOU: Well, we've all been through it mate.
DOUG: Not me, not all the way...not until now. I'll have to tell Pam, of course.
LOU: Hold it right there, mate, you can't tell her!
DOUG: I have to! We've always been square with each other. She's going to take it hard.
LOU: You're not kidding she will.
DOUG: Gee, I hate myself.
LOU: Doug, think, mate. Women are like elephants, they never forget.
DOUG: I did a terrible thing.
LOU: And so you're no saint, who is?! Mate, for the take of your marriage, just put it down to experience and forget it ever happened.
Pam comes in to find Doug. He tells her that he really missed her and asks what she's been up to. He tells her he's not going away without her again.
Dorothy comes in to find Phoebe talking to an imaginary Todd. She looks a bit worried.
Outside the Coffee Shop
Toby has told Rick about the blackmail from Michael. Rick advises him to own up. Toby wishes he could get his money back from Michael ($60). Rick offers to help.
Dorothy tells Helen that Phoebe is acting very strangely. She thinks the man at the cemetery might even be imaginary. Jim isn't sure it's such a big problem, but Dorothy thinks Phoebe might be on the verge of a nervous breakdown.