Jill is sitting up in her hospital bed, holding her baby. Barbara, Gordon and Fiona are all in the room with her, cooing over the little girl in admiration. Gordon says she's beautiful. He then turns to Fiona and asks her how it feels to be a grandmother. Fiona smiles happily and replies that it's wonderful! Barbara asks Jill if she's thought of a name yet, but Jill tells her that she hasn't, yet. Barbara continues that she bets Jill is glad that her daughter is out of the humidicrib. Jill replies that it's such a relief. She then looks at both Gordon and Barbara and tells them that there's one thing she's decided on: when she has her daughter christened, she'd like them to be her child's godparents. Huge smiles cross Barbara and Gordon's faces and Barbara says they'd be delighted! Jill thanks them. Fiona tells the others that she's going to leave them so that she can ring David and Beryl and break the news to them. Barbara smiles as she says to to tell them that, if they want to be godparents, it's too late! Fiona goes and Barbara returns to cooing over the baby.

In Melbourne, Katie is walking along the street and is nearly home when Jeff calls out to her from behind and catches up with her. He asks her if she's finished for the day, and she replies that she has. He then asks her if she's sick of pushing lawnmowers yet, but she indignantly replies that of course she isn't. Changing the subject, Jeff tells her that she should have seen them in Science today: their teacher cut up a frog! As they walk along, they pass David, who's working on his truck. John and Andy are helping him. David calls out, "Hello!" Katie calls, "Hello!" back. As she and Jeff walk on, she asks Jeff who tho two guys were with David. Jeff tells her that he doesn't know. Katie remarks that they're a couple of spunks - as soon as she's got changed, she's going back to introduce herself!

At the Palmers', Beryl thanks Fiona for calling, and she hangs up. Rosie anxiously asks how they are. Before Beryl can respond, John comes in and starts to ask if there's a rag around. Beryl tells him to hang on. She then continues that Jill has just had a baby - a little girl. John looks disinterested, but Doug comments that he didn't think she was due for another month. Rosie, though, reminds him about little Davey - he was a month early. Doug then asks if Jill has plenty of people to look after her. Beryl replies that she's got Fiona, Gordon and Barbara. Doug comments that that's not what happened with Lynn: her mum was in Perth and Beryl was in Sydney; she'd walked out on David... Beryl, looking annoyed, snaps that she doesn't think there's any point dragging that up now. She walks off into the kitchen. Rosie tells John that there are some rags in the linen cupboard, and he goes to find them. Alone with Doug, Rosie asks him if he ever thinks before opening his mouth. Doug retorts that it was the truth. Rosie tells him that there's something going on between David and Beryl that they don't know about. John comes back in and Doug asks him what's up with his parents. John replies that he doesn't think there's anything to worry about - Beryl is spending more and more time with her charity work and David isn't happy about it; she's never home; but they'll work it out. Doug snaps that Beryl needs talking to - a woman's place is in the home; it seems she's forgotten that; he'll have a nice chat with her and tell her where she's making her mistakes.

Doug heads into the kitchen and asks Beryl what she's doing. She angrily asks him what it looks like: she's making a cake. Doug tells her that he's been noticing one or two things since he's been down: she and David are having a few problems. Beryl snaps that she's busy. Doug persists, though, and tells her that she doesn't want to go spending all her time on that charity lark. Beryl indignantly snaps that she'll do what she likes - and it isn't a 'lark'. Doug asks what about David - he expects to spend some time with her there at home - where she belongs. Beryl angrily repeats the words, "Where she belongs..." She then snaps that David has been talking behind her back, has he? Doug repeats that he worked things out by himself. He continues that he doesn't want to see her and David having marriage troubles. Beryl snaps that he's the expert, is he? Doug reminds her that he got Kevin and Lynn back together, didn't he? Beryl tells him that, no: they managed to sort it out for themselves. Doug starts to say that Kevin told him that-- Beryl tells him that Kevin was only humouring him - and so was everybody else, so he shouldn't come in there like some marriage expert, because he's just a stupid old man who doesn't know what he's talking about. Looking taken aback, Doug says, "Beryl..." Beryl continues her rant, telling him that he's got no idea what's wrong between David and her, so he should stay out of things and mind his own business. She then tells him to get out of the kitchen and let her get on with some work.

Outside, the truck fixed, John asks David if he's going to take it for a run to see how it goes. David tells him and Andy that they can take him down the pub! The three of them climb in and drive off. Just along the road, in the O'Briens' driveway, Jeff throws a stick for Titus, who runs after it. Katie comes out of the house, all dressed up, and Jeff comments, "Talk about tarting yourself up!" Katie snaps, "Drop dead." Looking smug, Jeff tells her that she's a bit late - the guys next door have gone. Katie retorts that they'll be back - and so will she.

At the Palmers', Beryl walks into the lounge room and, seeing Rosie with her coat on, asks her if she's going out. Rosie replies that she's just going out for a while: Doug is dropping her off to see Wayne; he won't be coming in, though, as he doesn't want to see Wayne. Doug is standing with his back to Beryl. She addresses him and tells him that she owes him an apology: she didn't mean the things she said - she's very sorry; it's David that she's angry at. Rosie tells her that she and Doug don't want to interfere. Beryl says she knows that. She continues that, by the time they get back from Wayne's, she and David will have settled it one way or the other; they have a problem, and it looks like they have to face up to it.

In the lounge room at Toorak, Wayne furiously asks Robin what he means when he says they're going back to the original arrangements. Robin replies that, unfortunately, Patricia won't go along with the idea of forgetting it. Amanda asks him how hard he tried to get her to change her mind. Robin replies that he did his best. Wayne snaps that he doesn't believe him - he's trying to put them off balance. Robin retorts that he's just as much a victim as Wayne is; if only they knew the facts... Wayne tells him to just get out. Robin insists that they're very wrong, but Wayne tells him that he's the one making the big mistake. He throws open the front door and a look of shock suddenly crosses his face as he sees who's standing there. Rosie gently says, "Hello, Wayne." Wayne incredulously asks her what she's doing there. Rosie explains that she came to congratulate him and Amanda on the baby - but if they're too busy... She looks at Robin, but Wayne asks her to please stay; Robin is about to leave. Robin goes. Wayne tells Rosie that this is a bit of a surprise - the last time they saw each other... Rosie tenderly says she knows - but she's been hearing good things about him; people reckon he's changed - it must be the baby. They hug, but Wayne looks guilty. Rosie tells him that she couldn't be happier for him; she was starting to think he wasn't going to settle down and start a family...

At the hospital at Woombai, Barbara tells Jill that they'll see her and the baby tomorrow. Gordon tells her that Barbara wants to get to the florist. Barbara points out that that was supposed to be a surprise! They go. Jill asks Fiona if she'd like to hold her baby. Fiona takes her and, looking at her lovingly, says, "Look at you... hello... so beautiful... just like your mummy." Jill tells Fiona that she has thought of a name for her daughter, but she wanted them to be alone when she told her: she wants to call her Fiona. Fiona looks surprised. Jill tells her that she's been so good to her over the years; she hopes she doesn't mind. Fiona says, "Mind?! How could I mind?! " She laughs happily, but tears also well up in her eyes as she looks at her granddaughter and says, "Hello, Fiona."

David arrives back at the Palmers', carrying a pack of beers; there's a suitcase on the floor in the lounge room. Beryl comes out of her and David's bedroom and tells him that Doug and Rosie have gone to the Morrells'. David says he'll put the beers in the 'fridge, but Beryl tells him that she thinks it's time they made a few decisions: he's right about them kidding that they could pretend that there's nothing wrong in front of the family - but she's got so much anger bottled up inside of her that she's almost going crazy; while he was outside mucking around with his truck, she was so rude to his father; the poor old man was only trying to help - he could see that something was wrong. David tells her that she knows what his father is like. Beryl snaps that they've got to thrash it out here and now. David asks her what she wants to talk about. Beryl tells him that, whenever they've had a problem with their marriage before, she's always fought to get it back on the rails, but not anymore - if he can't accept that she might want something different now, then they may as well call it quits. David angrily asks what about what he wants? Beryl snaps that he's had it his way for twenty years - isn't it her turn? David tells her to come off it - she's had a pretty good trot. Beryl yells that she's been running after him and a tribe of kids for half her life, and the minute she wanted to try something new for a change, he ran off and found a girlfriend. David snaps that it's not like that at all. Beryl yells that that's rubbish - if he can't accept a few changes, their marriage is over: he can pack his bags and move in with Margaret for all she cares. David yells that making threats isn't a way of solving their problems. Beryl retorts that she's not making threats - she's giving him a choice. David tells her that, if that's the way she wants it... He picks up the suitcase and snaps that he'll be better off with Margaret, anyway - at least the woman cares about him. He walks out, leaving Beryl standing in the middle of the lounge room, looking shocked and upset.

In the lounge room at Toorak, Rosie asks Wayne and Amanda if they're hoping for a boy or a girl. Wayne tells her that it doesn't really worry them. Rosie comments that, as long as it's healthy... Amanda looks guilty. She offers Rosie some more cake, but Rosie declines, saying she'd better be making tracks. Wayne tells her to try and convince Doug to come in next time. Rosie says she'll see what she can do. She then turns to Amanda and tells her to to make sure she looks after herself. Amanda says she will. Rosie and Wayne stand up and head to the door. Rosie happily tells Wayne that she's so glad that they're friends again. Wayne replies that he is, too - it means a lot. Rosie asks him if they'll see each other before she and Doug head back to Brisbane. Wayne tells her that they'd better. She goes. Wayne then returns to the lounge room, and Amanda asks him if he's OK, adding that it was pretty awful. Wayne tells her that Rosie is the last person in the world that he wanted to lie to. Amanda comments that she probably won't find out. Wayne retorts that, if she does, Robin and Patricia are going to wish they'd never been born...

Andy and John jump out of the truck back at the Palmers', and start to walk up to the Palmer house. As they do so, Katie suddenly comes along and confidently introduces herself, explaining that she's one of the new neighbours. John introduces himself and Andy. Katie tells them that she saw them working on the truck before - were they having trouble? Andy replies that they're not anymore. Katie then asks them if they know anything about home computers. Andy looks at John and says, "Not a lot - why?" Katie tells them that she's just bought one and she's not very good at reading instructions; she was wondering if they could give her a hand. Andy says he supposes so. Katie looks at John and asks what about him? John says he'll just go inside and tell David that the truck is back. Katie assures him that her computer will only take a few minutes. John says he guesses the news about the truck can wait that long. The three of them head next door.

In the lounge room at the Palmers', Beryl seals an envelope and places it on the bookcase. She then stands in the middle of the room and looks around, tears in her eyes. After a few moments, she picks up a suitcase and walks out.

David is sitting on his suitcase in the corridor outside Margaret's apartment when Tony comes along. David comments that he's a bit late home, isn't he? Tony explains that he stayed back. He opens the front door and the two of them head inside. As they do so, David announces that he's left Beryl. Tony stops in his tracks, a look of shock on his face. He asks what happened, and David replies that things have been going downhill for a while, now; they were only making each other unhappy; he couldn't see any point in sticking it out. Tony remarks that he sounds pretty cool about it. David asks, "Do I?" Tony asks him what he's doing there, as Margaret's out - she's gone shopping with Patricia. David replies that, he doesn't know whether Tony picked it up or not, but he and Margaret are pretty close; it all happened when she was nursing him at Woombai - so they've decided to see if they can make a go of things. Looking surprised, Tony comments that he's a bit of a dark horse, isn't he? David asks him if he understands. Tony replies that sure he does. He then adds that he can see why David was so keen for him to stay there. David asks him how he works that out. Tony tells him that Beryl wouldn't get suspicious if he kept coming over to see him. David snaps that that's not the reason at all. Tony tells him not to get tied up in knots about it. He starts to walk off. David asks him where he's going. He retorts that he's got homework to do.

Rosie and Doug are back at the Palmers' and they've found Beryl's letter. Rosie is reading it out:

I know this probably comes as a shock to you, but it seems the best thing to do all round. David and I want different things out of life now and we just can't seem to agree on them. I've gone up to Macedon to spend some time with my mum and dad, and David has moved--

Rosie hesitates, looking shocked, before continuing:

David has moved in with Margaret Dunne - he feels she can be what I can't. I know I should have stayed to tell you all personally, but I'm sure you can understand why I didn't quite feel up to it. My love to you all, Beryl.

Rosie, looking incredulous, says she doesn't believe it. Doug snaps about how David has left Beryl for another woman - and that she's Patricia's sister into the bargain. He angrily heads for the front door. Rosie asks him where he's going. Doug snaps that he's going to talk sense into that son of his before it's too late. Rosie tells him that he doesn't know where he is. Doug snaps that he's with Margaret. Rosie asks him where she lives. Doug pauses a moment, as he realises that Rosie has a point, but he then recalls that Tony is staying with her, and Tony is mates with the kid next door; he'll find out off him.

Fiona is holding a yellow cardigan, which she brings into the lounge room at Woombai. She asks Gordon and Barbara if they have any idea who belongs to it. Gordon tells her that it's certainly not his! Barbara comments that it's probably Patricia's, and Fiona agrees that she thought it might be. She asks if anyone knows where she's living. Barbara says she's at Margaret's, she presumes. Gordon tells her that he'll ring and check for her.

At Margaret's apartment, David asks Tony, who's come out into the kitchen, how his homework is going. Tony just retorts that it's OK. The 'phone suddenly starts ringing, and Tony answers it. Gordon comes on and asks if Margaret is there. Tony explains that she's out at the moment, and he asks if he can help. Gordon says he was wondering if Patricia is staying there, as she left something at Woombai and he wants to forward it to her. Tony replies that she isn't - she's staying with Wayne and Amanda. A look of surprise crosses Gordon's face and he asks Tony if he's sure. Tony says he's positive. Gordon thanks him and hangs up. Still looking shocked, he repeats the news to Fiona and Barbara that Patricia is staying with Wayne and Amanda. Looking equally shocked, Barbara says, "What?" Gordon tells her that that was his reaction - he didn't think they could stand her. Barbara tells him that they can't. Fiona, looking thoughftul, says she wonders if Patricia could have some hold over them. Gordon says he hardly thinks so, and he asks Fiona why she thinks that. Fiona explains that something his been niggling at her ever since she sold her share of Woombai and Patricia bought into it - she suddenly had that money at the same time as Wayne suddenly became short of cash. Gordon says he can't believe Wayne would give her money. Fiona remarks that she certainly didn't get it from James Sheppard; she's definitely covering up something. She tells Gordon and Barbara that she suggests they get Stephen to 'phone the bank and find out whose signature is on the cheque that Patricia paid into her account; her bet is that it's Wayne's.

There's a loud knocking on the front door of Margaret's apartment. David goes and opens it and Doug storms in, past him. He angrily asks his son what the hell's going on - is he out of his mind or something? David angrily retorts that his father doesn't know what he's talking about. Doug snaps at him that he thought he'd learned his lesson with Patricia; now, getting mixed up with her sister... David snaps that he supposes Beryl told him about that. Doug tells him that she left a note; she's gone up to her mum and dad's. He then continues that, if all this is about Beryl getting tied up with charity work, he should have put his foot down before it got out of hand. David tells him that it's not as easy as that. Doug snaps that of course it is. He then adds that David was making it worse by playing around. David tells his father that he's making it sound cheap - and it wasn't like that at all. Doug snaps, "Yeah?" He tells David that the best thing he can do is go back to Beryl - and go back home. David snaps that he's damn sure he's not going back to a life where he's going to be miserable; he can't wait for Margaret to walk through the door - she makes him a damn sight happier than Beryl can. He tells his father that he can either like it or lump it, but that's the way it is. Doug yells at him that he's a poor excuse for a man - he's ashamed to call him 'son'. David takes a sip from his can of beer, not looking at his father. Doug storms out. When he's gone, Tony comes out from his bedroom and comments that he was a bit rough, wasn't he? He then adds that it's hard to know what to say - it was a bit of a shock before; he and Mrs. P. were the last people he expected to see split - but it's not up to him to give David a hard time. David thanks him. Tony tells him that his father will get over it. David growls that he won't this time - his marriage is over; it's finished; there's no turning back now...