In Dayton, Jake stops by Lou's diner where amnesiac Loretta is pegged as a slut. Loretta, calling herself Lulu, is befriended by owner Lou and regular customer Mac Slattery. Wanda tells Mary that she's found a way to achieve ultimate satisfaction and knows she can teach it to any man. Little Garth brings Pat to Mary's kitchen after Garth turns the hose on her, destroys her clothes, and locks her out of the house. Montgomery Monk attempts to restore George back his crabby old self. Mary hosts a disastrous New Year's Eve Party where Annie announces she's leaving Fernwood, and a drunken Tom reveals he's been fired.