Barbara senses the tension between Will and Paul and demands to know whats going on but Paul storms out. Barbara gets Will to admit that Emily is blaming Rosanna for the hauntings. Will apologizes to his mother for suspectin her and they make amends. Meanwhile, James informs Rosanna that the only way shell get Cabot back is if she leaves Oakdale for good - with James. Rosanna insists that Paul will never let her go but James says its up to Rosanna to keep that from happening. Later, a cold Rosanna tells Paul that Emily was right. Carly admits to sending Lily over to Julias after spotting Holdens car in Julias driveway. Jack blasts her for breaking her promise yet again. Meanwhile, an appalled Holden insists that Lily leave, then comforts a shaken Julia. After, Holden announces that hes having Julia get a restraining order against Lily. Lily breaks down and Carly vows to find out what Julia did in El Paso. Meanwhile, Jack arrives at Julias for damage control, but she says that after the stunt Lily and Carly pulled today, she doesnt want JJ anywhere near Carly or Jack. At the Lakeview, an upset Jennifer fills Mike in on Barbaras claim on Street Jeans. Mike agrees that Jennifer has no choice but to quit the company. When Sierra returns from her business trip with Dusty, she compliments Craig on Street Jeans and Craig cant tell her about Jennifer resigning. After, Craig begins to pressure Jennifer to change her mind, but Mike steps in and orders Craig to stop. Later, Mike overhears Henry teasing Katie about snoring and wrongly assumes they made love on their wedding night. Craig points out Jennifers discomfort watching Mike and Katie. Meanwhile, Dusty and Sierra receive a package of mud from their friends at the spa and get into a mud fight. During the struggle, they find their lips inches apart and quickly pull back.