Rachel and Tad talk about meeting again. Dione tells Joel that she likes him and Marcus, but Marcus wants to get serious and she doesn't. Merridy tells Lou that she wasn't planning on forming any attachments when she applied for a job away from Erinsborough.
Lou tells Merridy that it'll be a tremendous opportunity for her. She's obviously upset that he isn't telling her to stay - he clearly wants to but doesn't know how to say it.
Stephanie tells Lance and Toadie that she has a function coming up at work and she needs a date for her and a friend. They toss a coin to see who'll go with Steph and Lance wins.
Tad and Paul start squabbling - arguing over small things like the way Tad gets all lovey-dovey with Simone on the phone and Paul taking the toy from the breakfast cereal in the morning. Tad tells Paul that this is all because of him and Simone - Paul's jealous that he's got someone. Harold splits them up and Paul leaves. Harold talks to Tad about meeting his Mum again. At the Coffee Shop later, Harold tells Paul to go easy on Tad and remember what it was like for him when his father came back into his life.
Harold goes to see Lou at the garage about Merridy. He tells him that he should take a risk and ask her to stay. After all, it can't hurt to try.
Joel is wallowing over Dione - he thinks they're finished and she's going to go out with Marcus. The next day, Dione is driving by as Joel is out running. She stops and talks to him - she tells him that she's broken up with Marcus and she wants to talk to him later. Joel is pleased because he thinks they're going to get back together. Later, while Lance, Toadie and Steph are messing about in the swimming pool, Dione comes over to see Joel, who's sitting on the side. She tells him that she wants to slow it down a bit - see how they go as friends for a while. He's happy with that - afterwards, Steph tells Joel that if he wants Dione to be his girlfriend again, he's going to have to be the best friend she's ever had first.
Rachel and Tad talk at Number 24 and she gives him a picture of his real father (who was killed). Tad mentions her family and she asks how he knew she had a family - Tad tells her that he saw the pictures of her children and husband in her purse the other day. He says that maybe he could meet them some time but she lets him know, in no uncertain terms, that she's not going to be telling anyone about him. She tells him that if her family found out about him, she might lose them. She made a decision to leave the past in the past and she's sticking to it. Tad asks her why she bothered contacting him in the first place, she says she was curious - she wanted to know whether he was safe and cared for. Tad is really upset. Rachel leaves on a sour note. When Paul arrives home, he talks to Tad and Tad tells him everything.
Tad and Paul continue to talk about Rachel - Paul suggests to him that he might feel differently in a few days but Tad doesn't agree. He says that she can't come into his life and treat him like this. He walks out and Paul shouts after him.