Paul asks Jane if Mr Udigawa has gone to Alice Springs. He's relieved that he has - that gives Paul a few days to sort things out.
Jim comes in to talk to Paul about Lucy - she's giving him "one big headache"
Daphne's Hospital Room
Mrs Mangel comes to tell Daphne about the fire at the caravan park, but she already knows. Mrs Mangel asks what's going on with Paul and Gail - she's seen the ex-husband hanging around. Daphne tries to change the subject, but Mrs Mangel continues that she's seen Gail leaving Jeremy's room late at night. She says that someone ought to tell Paul - he always has such trouble with his ladyfriends! She gives Daphne a church newsletter about "Spiritual Guidance In Times Of Trouble" and says maybe she should give Paul a copy too!
By the Lake
Jeremy is pleased that Gail has called off the engagement with Paul. Gail wonders if Paul will fire her to get even so Jeremy says maybe Gail should talk to him. Jeremy says that Paul's used her, now it's her turn to use Paul(!) They kiss and Mrs Mangel walks by in the background and sees them.
Jim is talking to Paul about Lucy - he doesn't know whether he should send her to a private school. Jim says Lucy has turned into a horrible snob but Paul says a private school might cut her down to size. Jim suggests that Paul brings Gail round for dinner one night, but Paul says they're quite busy.
Jim says Paul has made a good choice in Gail, so Paul is forced to tell him that the engagement is off. Jim advises Paul to talk to her, but Paul doesn't think it will work.
The Outer Office
Mrs Mangel comes in to see Paul. She tells Jane that it's urgent that she talk to him - she needs to tell him about his finacee flaunting herself in public with her ex-husband(!)
The door of the office opens and Jim leaves. Mrs Mangel probes Paul for information on his "personal problems" and tells him he's not seeing what's going on "under his nose in this very hotel" Paul is left confused.
Jeremy gives Rob some money towards the bill for No.13. He can't wait to drive her on the track.
Henry tells Sue that he was worried about her when she didn't contact him after the fire. Warren invites Henry out to dinner with him and Sue, but Henry isn't impressed.
Jane is trying on Mike motorbike helmet when Gail comes in. She goes in to the inner office to see Paul.
Gail wants to know where she stands - does she still have a job. Paul says it's not going to be easy, but he's got no complaints about the way she does her job. Gail suggests that he tells Mr Udigawa that she broke it off. She says they both know that their getting married would never have worked out anyway. Paul insists that Gail mustn't trust Jeremy - at least Paul has always been honest with her. Gail storms off.
Henry invites Sue to move in with them, but she'd rather stay at Warren's. Henry is cross and tells Sue that unless she comes to stay with him, their relationship is over. Sue sends Warren to wait in the car. She tells Henry she's going to stay with Warren, and if that means the end of their relationship then so be it.
Daphne's Hospital Room
Mike leaves his helmet outside while he visits Daphne. Des is also there, and then Gail arrives. Gail congratulates Mike on his new motorbike, making Des drop a vase(!) Daphne wants to know why noone told her.
Mrs Mangel tells Jane that she won't have her riding Mike's motorbike. Jane says she has no intention of going on it - Mike's driving is wobbly!
Henry calls round to see Jane but Mrs Mangel says that Jane is busy and wouldn't want to mix with criminals anyway(!) She shuts the door in Henry's face.
Gail tells Rob that she's having a rough patch with Paul and he tells her to sort things out quickly. When Rob has gone, Jeremy says other people haven't got a clue about the nature of love - they'll be fine together. Gail thinks Jeremy has changed for the better.
Daphne's Hospital Room
Daphne is quite calm about the bike - Mike is old enough to make his own decisions. Des and Daphne chat about the baby - they can't wait for it to be born so they can be a proper family.
Jeremy is making an omelette while Gail has a bath. The phone rings and Jeremy demands of the person on the other end how they got Gail's number. He quicks hangs up saying he'll talk to them tomorrow. He ends the conversation with "OK, honey, I love you too." (Arggghhhhh!!!)
Gail comes back from the bath and Jeremy tells her he's a new man - no more tricks or lies, he's finished with all that.