At Fairwinds, Tom, Lucy and Dusty witness Margo as she puts Craig in hand cuffs for his past kidnapping of Lucy. In tears, Lucy tells her father he doesn't know how to be a good father, and Craig pleads with Margo not to arrest him, but Margo continues as she reads him his rights.

Craig accuses Dusty of manipulating Lucy. After confronting Dusty, Craig turns to Lucy and tries to hold back his emotions as he tells her, "I'm not a perfect father, but the love I have for my children -- all three of you -- is perfect. Don't let Dusty destroy our family!"
"You destroyed our family!" Lucy responds through anger and tears.

Craig tells Lucy she will regret having him placed under arrest. Margo steps in and takes Craig out to place him in jail where he belongs.

At the jail, Craig informs Margo that the charges against him won't stick, and instead of blaming Lucy, he puts the blame on Dusty. Margo tells Craig he's wrong about Dusty, and he doesn't care who he hurts. She lets him know if he as a real man he would learn to love and let go of his children. Craig asks Margo if she was in his position could she let go of her children, and she responds by telling him she could if she hurt them like he has hurt his. Margo smiles when she tells Craig that the press will have a field day with him, and she states Lucy will make sure to alert them.

Later, Tom comes in and finds Margo upset. He hugs her and tells her it's going to be okay. She confesses to Tom that she can't believe Craig still gets to her after all these years.

While Tom comforts Margo, Craig reminds him they have a lot of work to do, but Tom refuses to work for Craig, and he tells him the only work he has to do right now is get his wife away from him. Craig refuses to let Tom quit, and he orders Tom to set bail and discuss the situation. Again, Tom refuses telling him to find a new lawyer, because he has a "conflict of interest." He goes on to say he should have never taken the job. While Tom deals with Craig, Margo smiles.

"We have a contract," Craig reminds.
"So sue me," Tom shouts.
"Tom, don't you walk out on me!"

Ignoring Craig, Tom leaves the jail with Margo by his side. "Tom," Craig shouts.

"Just when you thought the night couldn't get any worse," Emily pronounces on her arrival.

At Adam's place, Adam asks Gwen for the material she has, but when she shows it to him he asks her if that's all she has. Gwen looks worried, but confirms. Casey asks Adam what is wrong with her material, and Adam informs him that Gwen has a beautiful voice, but she has to be able to produce her own material as well. Soon after, Adam asks Gwen to sing a few lines for him. After she sings, he asks her if she's ever worked with a coach before, and she tells him she hasn't.

While Adam leaves to answer the door, Will tells Gwen not to let Adam get to her. Will and Casey leave the room, and Gwen hears Jade's voice, so she goes to check it out.

"Wow, It just seems like every time I turn around, there you are," Gwen confronts Jade.

Jade responds by telling Gwen she had no idea they were there. When Will and Casey return they ask Jade to leave, but Adam tells them she doesn't have to leave. Jade tells Adam she should go, and he walks her out.

After telling Jade goodbye, Adam goes back in and asks to talk to Gwen alone. Will doesn't want Adam talking to her alone, but Gwen steps in and says they can talk alone.

While outside, Jade hides in the bushes to spy on Adam and Gwen's conversation. Adam tells Gwen his brothers are getting in the way. This makes Gwen angry and she confronts Adam about it. She tells him they will stay.

Back inside, Gwen sings once more for Adam, and he tells her it was beautiful enough for an album. Gwen is happy, but she asks Adam if they can reschedule for tomorrow, because she has a test to study for. Adam is disappointed, but tells her they can. Casey sees that Adam doesn't like the idea, and asks him about it. Gwen also asks Adam if her studies will be a problem, and Adam tells Gwen she needs to choose. "The Dean's List or the Billboard's List, but you can't have both," Adam adds. He goes on to say he needs a commitment from Gwen, because he can't sit around and wait for her to get a diploma.

Soon after, Casey and Adam leave. While outside, Casey tells Adam he was too hard on Gwen, but Adam tells him he needed to be.

Meanwhile, inside, Will and Gwen are discussing what Adam just told her, and Gwen tells Will that Adam is right, and she assures him she can handle Adam.

Lily stops by Carly's and notices something is wrong. She asks Carly about it, and Carly tells her what she told Jack. She goes on to say Simon is "more right" for her than Jack. A bit surprised by the news, Lily warns Carly about Simon's dark side, but Carly tells her she thinks she's drawn to that side of him. While visiting, Carly admits her talk with Jack was to let go of the past.

"We're ready, ready to move on together," Carly tells Lily referring to Simon. Carly goes on to tell Lily about the message she left for Simon. Lily suggests she call Jack again, but Carly tells her she doesn't want to seem desperate, so Lily tells her she should track him down. However, Carly believes tracking him down would make her appear even more desperate.

At the cottage, in a heat of passion, Katie and Simon tear each other's clothes off and make love. Later, as they lay in bed naked, Katie asks Simon what they have done. She wonders if they've made a mistake.

While Katie and Simon are getting dressed, Katie asks him to leave, "please," she continues. Simon refuses telling her he came to make peace of their past, not to sleep with her. While in tears, she tells him he was her first love, but she can't love him anymore. She goes on to say she broke her vows with Mike. "I cheated and lied," she sobs.

Later, Simon tells Katie they made love, and she informs him they done something, but it wasn't love. She makes her way to the door to show Simon out. "Get out of my life and stay out!" she orders. Reluctantly, Simon leaves, and on his way out he punches the wall.

After Simon leaves, Katie cries as she realizes she just betrayed Mike. While crying, she feels a hand touch her shoulder.

"Hey, what's wrong?" Mike ask as he enters the room.

Katie turns around and faces Mike, which causes her to weep even more.

Back at Fairwinds, Dusty comforts Lucy. She tells him she should go, but he says he's not going to let her out of his sight and kisses her.

After their kiss, Lucy says now maybe she can move on. She goes on to say she thought Craig would be different when he came back, but she was wrong. Dusty asks her if she had Craig arrested to prove something to him, but she tells him no, she says she done it for herself. Dusty tells her he will always be grateful, because she put herself on the line for him, and again, they kiss, but this time their kiss leads to them making love.

Simon arrives home, and he listens to Carly's message. While listening, he becomes angry, and he gets up off the bed and heads for the shower.

After Simon comes out of the shower, he's greeted by Carly. She wastes no time when she tells him she left him a message, and he tells her he got the message. She goes on to say she meant every word she said, and then she asks him what he's been up to.

Next on As the World Turns...

Katie apologizes to Mike.

Carly demands to know what Simon was up to. "Don't make me drag it out of you," she warns.

Dusty reveals to Lucy that he wants the two of them to be together. Lucy smiles, nods her head and says, "Okay."

Craig is out of jail and up to no good again!