Though Dusty finds it hard to believe, Sierra is certain that Craig is on the up and up when it comes to Street Jeans and is glad he and Jennifer have apparently put their troubles behind them. Later, a distraught Jennifer confesses to Dusty her night with Craig and that hes been blackmailing her. Sierra then enters and learns the truth, promising Jennifer that she will handle Craig. Sierra calls Craig to her office and just as he hands her his letter of resignation, Sierra rips it up and fires him. But Craig is already in business with Barbara, and declares that hes going to crush Street Jeans. Meanwhile, Barbara meets with Paul to gloat about her success in removing Craig from Jennifers life but Paul questions her motives. Later, Barbara, Paul, Dusty and Jennifer are shocked to realize that Jennifers sketches and designs have been stolen. Katie tells a relieved Henry that everything is out in the open and looking good for Mike and Jennifer. Later, Henry wonders if thats really true when he spots a sad Mike sitting by himself. With Henrys permission, Katie goes to speak to Mike and learns he is having trouble getting Jennifers act of infidelity out of his head. Aaron discovers Wills bloodied shirt and Alison confesses that she tended to Wills wounds when he had a little accident. Aaron presses and Alison comes clean. Aaron worries that Will is a powder keg ready to explode but Alison does her best to ease his mind and the couple make love. Meanwhile, Will is unable to shake his feelings for Alison. He heads over to her apartment with flowers in hand but leaves before knocking when hears the happy sounds of Alison and Aaron inside. At school, Celia questions Will about the flowers and he claims that they are a gift for her, just as Casey walks by.