Karen is overjoyed to find that Jeff is alive, until he locks her in the station and tries to kill her. He says Wayne was killed in his apartment, and he sent her all the letters. Dianne is there and calls the police. Jeff lies to the police, but Dianne taped the whole thing. Gary calls a frantic Val, and says the airbag saved him, but he kept passing out from the booze. He later talks to Karen, and Karen gives her famous ""Pollyanna"" speech. Paige makes up with Tom and moves in with him. Anne receives compromising photos of herself and a note demanding a million dollars. Danny is found dead and police say his fingers were broken, so they'll have to investigate. The coroner tells Val she's responsible for Danny's body and she's being charged rent until she has his body moved.

The police soon realize that everyone had a motive for killing Danny, but Frank is the only one without an alibi. Karen is depressed over her attack and is afraid to leave the house. Val and Gary ask Mac and Karen to be in their wedding. Paige doesn't go to work and tries to get a new job, but isn't offered any. Linda uses Paige's absence to try to ingratiate herself to Greg. Linda's upset when she hears Greg call Paige and offer her a big promotion and raise. Kate and Greg have a nice talk, and she tells him he and Claudia are exactly alike. Anne calls her ex-lover, Marco Conti, who is rich and married, and tells him they're being blackmailed. It's actually Anne who's doing the blackmailing. Marco says he'll take care of it, and sends Nick Schillace to Knots Landing.