Bob hands Katie the diamond and tells her she can have it until midnight. Henry sets Simon's jeweler up to be arrested. Meg surprises Craig with a kiss!
At Meg's place, Meg tells Emily Craig is on his way. Moments after hanging up, they hear a knock at the door. Meg answers the door, surprised to see Craig. She can't believe how quickly he arrived. He asks what's so urgent. She asks him to sit down, but he says he's in a hurry. She tells him Paul needs to rest to make a full recovery. He says she's being very protective of a guy she just left at the alter. She says it's not personal; she's just being a nurse.
Later, Craig is surprised when Meg asks him to be her date for the New Year's Eve party. When he asks her why she asked him, she says a girl doesn't want to be alone on New Year's Eve. As soon as she spots Emily hiding, she cuts her self short to remind Craig that they're already late. She suggests he go change. While changing, Meg asks Emily if she was able to plant the blanks. She confirms. When Craig comes back in, Emily runs to hide and Meg tells Craig she's changed her mind, she doesn't want to go. Craig is shocked at her change of heart. She says a woman has the right to change her mind. He asks, "Why the sudden change of heart?" She explains that while he was upstairs she pictured them entering the party, and all the people she's not ready to face yet. She goes on to say Barbara will only beg and plead for her to take Paul back, and Holden and Lily are able to survive everything, unlike her self, because she's breaking off her second serious relationship since her divorce. He says he can relate to that after just losing the two "joys" of his life. She expresses that she doesn't want to get him down, so if he wants to go to the party he can drop her off at the farm on the way. He suggest they have New Year's there instead. As he grabs the champagne to celebrate, he reaches to open the drawer where Emily planted the blanks. "Craig, stop," Meg shouts.
"So, now you've changed your mind about the wine?" Craig inquires. She replies that her stomach is upset. He demands to know what is going on. "It's nothing, it's just..." she laughs. "Would you look at that, it's midnight," she continues. After they wish each other a happy New Year, Meg surprises Craig with a New Year's kiss!
At Java, Maddie arrives asking Gwen about LA. Gwen reveals that her career is over. Maddie tries to talk Gwen out of giving up on her music career, but when she sees it's not working she asks if it's about Adam. Gwen tells Maddie she kissed him, but she says it was just a kiss. She goes on to say Jade found out and called her a hypocrite. Maddie replies, "Who cares what Jade says, she just likes to stir up trouble."
After Maddie leaves, Will arrives and confronts Gwen about quitting. He encourages her not to give up on her dream, but she says the last thing she would want is him to feel weird about her working with Adam after what happened in LA. He says he talked with Adam and he said the same thing she did, that the kiss was all about being pumped up after the performance. He goes on to say after he got over wanting to knock him out he believed him. He says there's no reason for her to quit, because he wants her to see this through.
Katie approaches Bob asking him where the diamond came from. He says at the hospital, but so far, there are no takers. "Well, you've got one now," Katie replies. Bob questions her about wanting the diamond. After he seems satisfied with her answers, he hands her the diamond saying she can only have it until midnight.
After Bob and Kim leave, Henry arrives whistling at the diamond Katie is examining. He asks her how she got her hands on it. After she explains, he reaches for the diamond. "What are you doing?" she asks. "You might want to change your master plan there, Sweetheart," he replies. She informs Henry that she may have ruined her marriage with Mike, but Simon committed a crime that's punishable by law, and she's not going to stop until he pays for it.
Guests start arriving at the New Year's Eve party. Lily greets Simon. She says she knows it's hard on him seeing Carly with Jack, but she says Kim and Bob went through a lot of trouble to put the party together, so she hopes he doesn't make a scene. He replies that he wouldn't dream of it. He goes on to say she has his solemn vow that he won't do anything Carly doesn't want him to do.
While Jack and Carly dance, his phone rings. It's Katie asking him to meet her. "Can't you give this a rest?" Jack says to Katie over the phone. She says she has the proof he needs to put Simon away for good.
Once Jack leaves to meet Katie, Carly's phone rings. She answers to hear Simon asking her to meet him upstairs. Immediately, she heads upstairs to meet him.
Once upstairs, he pulls her inside, shuts the door, then kisses her passionately! Carly finds it hard to restrain herself, but manages to push him away. She says she came up there to tell him to back off. He asks if that's really what she wants. She says no, but she has to. As always, Simon continues to try to reassure her they have nothing to worry about. He softly kisses her neck, but she says she has to go. He asks for five more minutes. She begs him to let her go. "Oh please, please don't do this. Please, please let me go," she says breathlessly. Unable to resist, she turns around to kiss him. Immediately, they begin undressing each other.
Elwood asks Casey to leave his name out of the gambling deal when he tells his parents. He says he will.
After Elwood makes his request, Casey approaches his parents. He says he has something to tell them. He's interrupted by Kim and Bob's announcement that Holden and Lily will dance for them. After the introduction, Holden and Lily dance. Faith and Luke watch. Luke asks if she's going to stop getting all freaked out that they're going to break up again. She says she guesses, but as she watches her parents dance she doesn't look enthused.
Lily and Holden finish their dance; everyone applauds. Margo asks Tom why he can't dance with her like that. They turn to ask Casey if he had something to talk to them about. Seeing they want to dance, he replies, "Nothing that can't wait."
Jessica arrives at the jail to see Dusty. She says she doesn't have anything new to report, but she says she came by because his case is top priority. He suggests she go home to celebrate the New Year. She says she hasn't even started her pep talk, but he says he's had many visitors and no one has cheered him up yet. She says he wins, then informs him that she'll call someone to take him back to his "cage."
Jade asks Adam if he has feelings for Gwen. He says the only feelings he has for Gwen is her music, then they kiss. He says before they go to the party he needs to stop by to make sure Will talks Gwen in to not giving up on her music. Jade doesn't look thrilled, but Adam assures her it's just business.
Back at the party, Gwen says she should call Adam to tell him she's changed her mind and decided not to quit--if he's still interested. Moments after, Adam approaches saying he's still interested. He goes on to say what happened in LA will never happen again. Jade says since they're clear about that, she and Adam should be going. Gwen asks if they're going to stay for the party. He says no, they have other plans, but he says they will stay long enough to see her perform.
As Casey goes back inside to join the party, Adam asks him if he's trying to avoid him since he didn't tell their parents about his gambling addiction. Casey says they haven't had fun in years. "You should have seen them out there on the dance floor," he adds.
"You didn't want to burst their bubble," Adam replies.
"Plus, I got to thinking since I already quit betting I promised you I'd never do it again… Maybe you could let me slide just this one time."
"Okay, why shouldn't I give my little brother a break," Adam nods. "But Uh, this is the… uh… receipt… the debts I covered for ya. Just in case you think about slipping up again," he continues, handing Casey the receipt.
"Thank you, Adam," he replies, patting him on the shoulder.
"Looks like we both got a break tonight."
Later, Maddie tells Gwen she knows why Adam kissed her. Gwen turns around to see Adam and Jade kissing.
"Can we, uh, lose that subject?" Gwen requests.
"He kissed you to forget about the man eating witch waiting for him back home," she continues, ignoring Gwen's request.
Gwen says she doesn't care what Adam enjoys, because he's her producer--her husband's brother--and that's all he's ever going to be.
Later, Gwen entertains the party guests with a song. After her performance, Will says if anything proves she shouldn't quit that does. Soon after, Maddie starts the count down to midnight. As the clock strikes midnight, the couples kiss. Emily rushes up to Margo and Tom breaking off their kiss.
"Emily, what do you want?" Margo asks.
"I need Tom," she replies.
"Well, you can't have him."
"Look, I'm serious--okay. It's a matter of life and death."
Henry calls Maria (Simon's jeweler) over. As he flirts with her, he says he called her over because he has something to "unload" on her. After handing her the diamond, she examines it. Jack watches as she tells Henry they both know the diamond is from the royal necklace. Then she asks him if he was the one who helped Simon pull off the heist. Henry replies, "I had nothing to do with it." At that moment, Jack approaches showing his badge. When he places Maria in hand cuffs and begins reading her, her rights, she looks at Henry realizing he set her up. "You double crossing liar!" she says.
After Jack orders an officer to take Maria to the station, Katie instructs him to stop stalling and go upstairs to arrest Simon.
NOTICE: As the World Turns will not air tomorrow due to College Football, and it will also be pre-empted on New Year's Day. Regular programming will resume on January 2, 2007. Have a safe and happy New Year!
Next week on As the World Turns…
Paul has another episode. He sees water then fire!
Katie continues demanding that Jack go arrest Simon before the prince's people does. He tells her to back off, saying nobody tells him how to do his job.
"This is where I want to be," Carly says to Simon, after making love.