Phil tells Susan that it's his fault that the computer weren't insured.
Phil tells Susan she should take on some of the responsibility as he works for the school council unpaid! Susan is incredulous. Phil tell Susan he's resigning from the school council.
Toadie is frantically cleaning up because Sarah is due home from Tasmania at any minute. He hides things under cushions. Sarah comes in with a new fringe hairstyle. She greets Toadie and Bob enthusiastically. Sarah says she feels much better after her holiday. She wants to pretend the business with the stalker never happened.
Susan is ranting to Karl that Phil is running away when they need him most. Susan says it's Phil's fault no matter what anyone says. Susan worries that Ruth will resign from the school council too. Karl says he's her friend and her treasurer and she can't afford to lose either.
Lance is struggling with his gambling addiction. He can't help himself and rings Toadie's telephone gambling account again. Phil comes in before he can place a bet. Lance asks Phil if he sorted out the computers. They are both very touchy. Phil asks Lance to give him a bit of space.
Harold is looking at Leonardo da Vinci's plans for a flying machine! Paul is playing his music very loudly in his room again. Harold says playing the same song over and over is obsessive. Harold hopes Hannah leaving doesn't drive him to depression.
Susan comes to see Phil. She says she over-reacted and says he's got an otherwise clean record and she wants him to stay. Phil sees through her and sees that she's trying to stop Ruth resigning too! Susan says their friendship is more important and Phil is forced to agree. She asks him to stay. Phil says he'll stay until she finds someone else. Susan says that could take forever(!).
Outside the Coffee Shop
Toadie is telling Lance about a hot tip on a horse. Toadie rings his gambling account to put a bet on it. He asks for a balance on the account and discovers that someone has been using his account. He asks Lance suspiciously if he knows anything about it.
Paul is listening to his music on his walkman this time while Madge and Harold continue to discuss the flying machines.
Phil brings around an email from Hannah for Paul. Paul is depressed and says she's having too good a time to remember Erinsborough. He dejectedly goes back to his walkman.
Outside the Coffee Shop
Toadie is cross with Lance. Lance says they're partners but Toadie says he's ripped him off – he is $30 down and anyway it was Toadie's personal money. Lance says everyone has the occasionally loss but Toadie says he doesn't deal with cheats and liars and storms off.
Toadie storms in and tells Sarah he is cross with Lance but doesn't elaborate. Sarah is looking at some makeup she got from her friend in Tasmania. Her friend is hoping Sarah can get them into local shops for a commission.
Sarah is testing out her sales pitch on Madge. Madge tries out one of the products and is impressed. Paul's puts his music on loudly again and Harold asks him to turn it down. Madge encourages Sarah to sell the makeup door-to-door.
Paul is rude to Madge about the music. Harold is angry and makes Paul apologies.
Lance apologies to Toadie and says it won't happen again. Lance asks Toadie to re-open the account. Toadie refuses and says that he thinks Lance has a problem. Lance shouts at him and Toadie throws him out.
Paul's music is blaring again so Madge and Harold can hardly hear themselves talk. Madge says she's going to go through Jack Ramsay's papers again to look for plans for the flying machine.
Lance is about to go into a betting shop but he sees Phil picking up some dry-cleaning and hides his face. When Phil has gone, Lance goes into the shop.
Hannah has called for Paul. He tells her he's taped the Battery Acid CD for her. He goes over to the Martins to send an email to her – it's more private to talk that way! Paul is cheerful again. Madge says mood swings are normal for teenagers but Harold is still worried about Paul's music.
The Coffee Shop
Karl bumps into Sarah and says he heard things have been tough for her recently. She tells him about the makeup idea. Karl tells her not to overdo it and Sarah awkwardly says that she's fine. Karl compliments her hair but things are still awkward between them.
The woman behind the counter asks Lance for some ID. He says he's left his wallet with his ID at home and walk out.
Toadie opens the door to find Karen standing there. She says she wants to talk about their relationship.