Henry is flabbergasted to see that the incriminating tape of Katie has been switched! He confronts Katie, who denies any involvement and thinks Henry is scamming both "Lily" and her. Holden arrives and "Lily" has Katie fumble through an explanation. Katie is thrilled to discover that "Lily" and Holden are living apart and tries to cozy up to him. Jake tells Molly he'll walk out of her life if she continues to scheme. If she drops the revenge plot against Katie, then he'll stick around. Henry arrives, fuming, but doesn't accuse her outright of taking the tape. Finally, Molly gets rid of Henry and tosses out the videotape. She tells Jake that she has chosen him over revenge. They make plans for a night on the town. Later, a very Rose-like "Lily" arrives and demands Henry's tape from Molly. On the island, Lily is unconscious after the explosion. Simon carries her to his island cave paradise and explains he was hoping she would move in with him. Lily refuses and Simon blurts out the cold, hard truth: they may be stranded on the island for a lifetime! Unable to face the truth, Lily runs out and finding her lean-to destroyed, dissolves into tears. Simon comforts Lily as she cries. Back in Oakdale, Lucinda is surprised that "Lily" has moved into Cal's. While waiting around to have it out with her, Lucinda is shocked when Tom shows up with a 2 million dollar check for "Lily"! Later, Holden arrives at the house looking for "Lily," unaware that an armed Celia has broken in.