At the beginning of the episode model Olga is out!

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The designers have learned to expect a twist, this week is no different. This week's challenge is to design a dress for the host of Access Hollywood, Nancy O’Dell. Nancy will help judge the runway and wear the winning design on the red carpet at the 2005 Grammy Awards. The designers get a chance to meet Nancy as she answers questions about what her preference and needs are. Another surprise is the help they get from eliminated designer Rob.

With $300 to spend, the designers get busy at the fabric shop. Austin grabs a mix of soft blues and purples. Jay attempts combine his own preference with Nancy's needs and wishes. Austin commits to a loose, glamorous-but-sexy evening gown, while Wendy goes with short and sexy. Kara plays to Nancy's fondness for two-piece outfits, with a draping shirt over leather pant.

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You're either in, or you're out, who was out this week? Austin is Out!