Paul finds Gwen has smuggled Billy into the padded cell to see Will and voices his concerns about Wills attachment to Gwen and her baby. Will stands firm and demands Paul recognize Gwen and Billy as apart of his life. Meanwhile, Jennifer runs into Meg and Dusty, the happy couple, and while she bears a brave face, her heart aches with the fantasy of having Dusty and her baby to celebrate the Christmas holiday. When she sees Paul, she tells him about a telegram she received from a friend in Europe, which Paul orchestrated, and says that she wants to go there and not come back. Meanwhile, after seeing Jennifer alone while she has Dusty on her arm, Megs guilt continues to plague her. Katie successfully convinces BJ that she and Mike have broken up and comes close to discovering Henry in BJs wine cellar. However, between Mikes arrival and Olgas ability to keep Henry hidden, Katies rescue mission is thwarted. But, despite her difficulties, she remains determined that she will find Henry when she discovers a receipt, proving BJ is holding Henry captive. At Burts garage, Carly and Jack successfully apprehend Iris. She attempts an escape and tries to take Carly hostage but Carly and Jack ultimately prevail. However, Stan takes off to save himself but is later apprehended. Hal arrives with back up and takes Iris into custody. Hal then comes to Will in his padded cell with the good news that with Iris and Stans arrests, Will is free to go. They return to Iriss house but when Hal arrives to take Will home, Carly offers Gwen a place to stay at her house and Gwen happily accepts.