Kelly and Matt babysit Erin, and have sex in the living room after she goes to sleep. They do not realize that Mel and Jackie have set up a video camera to observe prospective nannies with Erin. Erin switches the tape with a copy of "There's Something About Mary," and the illicit video ends up in Dylan and Gina's hands. Dylan becomes furious, prompting Gina to suspect that he still has feelings for Kelly. She believes that Dylan is trying to overcompensate by arranging a private concert by Monica, and tricks him into admitting that he slept with Kelly in Mexico. Matt breaks up with Kelly, who reminds him that he was married at the time. He forgives her after she insists that she never revealed the truth because she did not want to add to his woes. Donna asks Wayne, a good-looking pro beach volleyball player, to model her new line of men's wear. Matt files a lawsuit on behalf of cancer victims against a number of companies that polluted the environment—including Hunter Oil. Noah refuses to cooperate, and suggests that he and Donna live together so that he can move away from Matt. Donna hesitates because of her attraction to Wayne, whom she kisses in a restaurant. Steve panics about the possibility of massive computer failure on New Year's 2000, and becomes obsessed with stockpiling supplies. Janet believes that he is just trying to avoid the romantic vacation they had planned for New Year's. Steve explains that he is gun-shy about relationships because Celeste, Carly and Clare all dumped him; Janet promises not to leave. Katie sleeps with David, then has difficulty dealing with it and says she must abstain for at least a year. David admits that he cannot handle this, and breaks up with her.

Kelly receives medical treatment and files a police report. She tells Dylan what has happened, and stays over at his house for several nights. She also confides in Donna, but cannot bring herself to tell Matt. He notices her odd behavior and suspects that she is seeing Dylan. Kelly receives counseling from a rape crisis center, but still feels extremely vulnerable. Dylan gets her a gun. Matt helps a thief gain his release through a technicality. His client is the same man who raped Kelly, and they nearly run into each other. Although Dylan warns that she is still fragile, David asks Gina on a date. He supports her as she tries out for a spot in an ice show. Gina does not emerge for her audition; she has passed out in the bathroom after purging. Wayne asks Donna to accompany him to Acapulco for a volleyball tournament. She turns him down because she does not want to shake up her life. After one of his photographs receives acclaim, Steve tries to impress Janet by becoming a professional photographer.