Annie is home with Emma. She's worried about the DNA test, but Ryan is there to comfort herand to baby-sit Spike, since Zach and Kendall are at Erica's party. The sexual tension is thick between them, and it's uncomfortable when she mentions Kendall.

Babe can't believe what Josh said to JR. And she's even more confused by his reactionhe doesn't seem angry. He's surprisingly subdued and doesn't believe what Josh said. He says he "only" believes Babe. But she says too much when she tells him she told Josh it was "over."

Adam and Krystal walk in with the news that the baby is a girl, and healthy! JR announces that he's fired Josh, and they're all pleaseKrystal is too pleased, according to JR. JR wants her to call Josh and formally announce that he's out of their lives. She doesn't want to, and he gets angrier and angrier. Finally he asks her straight out if she slept with Josh. The answer is yes.

Lily is up and around, and Sean is babysitting her. She's confused about what's happened since her hospitalization. She's afraid that she's the reason Erica's living at the Inn. Sean explains to her that she's not the cause of any problems. The doorbell rings, and it's Amanda. Lily tries to make sense of Amanda's apparent relationship with Jonathan. Amanda tells her that Jonathan still loves her and she ought to give him another chance. Lily becomes agitated, and cuts her hand.

It's time for the New Beginnings party! Josh is already on a tear, complaining about Zach's presenceand insulting Kendall by suggesting that it's Zach's prowess as a lover that keeps her married to him. He reveals Bianca and Maggie's problems. Kendall finally has had enough and suggests that this is all about his issues with Babenot them. She tells him if he makes her chooseit's Zach all the way.

Before Erica makes her appearance, Jack surprises Erica with his presenceand a glittering diamond necklace. When Jeff shows up at her door, ready to escort her, he's in a shock.

Erica makes her appearance and the argument spreadsjust as special guest Donnie Osmond arrives, and notes that "Osmond family reunions are nothing like this!" She introduces him to her family, and the tension is still thick.

When Erica and Donnie appear before the press, she announces that he will be the lead guest on her show. Afterwards, he teases her about her "husbands", and Josh complains to Jeff about Erica. He tells him about revealing the truth to JR. Later, he wanders off to chat up Erinand suggest they hook up.

Zach and Kendall are sitting together, and he wants to know if she really meant it when she defended him. She did. They decide to leave early, since Kendall want to show him their dream house. When he gets there, he tells her that they can't live there.

NEXT ON AMC:

JR confronts Babe.
Erin and Josh hook up.
Zach explains why he can't live in Kendall's dream house.