When Greg needs an upgraded security clearance to work on a top-secret case, Dharma and the families are subjected to a background check, which reveals some very interesting information about Larry and Edward. Dharma discovers to her horror that her proud anti-establishment rebel father is not in fact wanted by the FBI as he's always bragged, and embroils Greg and Pete in a scheme to plant a phony file for Larry to steal. Meanwhile, Greg is shaken to discover that Edward never in fact divorced his first wife; and Kitty's reaction to the news is not what anyone would expect.

Dharma's parents arrive for their weekly yoga class only to find Dharma in tears because all her other students have deserted her for the popular self-defense class across the hall. Greg's efforts to cheer her up only get them evicted from Kitty's operatic fund raising evening. Clearing out her locker, Dharma curiously wanders into the self-defense class that turns out to be run by a wacky woman named Spyder, who is promoting herself with alarmist flyers about a massive increase in crime in the neighborhood. When Dharma protests that this is a lie, Spyder intimidates her physically, then invades a depressed Dharma's nightmare about breaking her non-violent principles and retaliating. When Dharma does attempt to remonstrate with Spyder, both she and Greg get their butts kicked.