- Audrey cons her way into working at the perfume counter where Laura worked and discovers that it's being used as a recruitment post for One Eyed Jack's. James, Donna and Maddy plan to lure Jacoby away from his office.
- This episode begins with a summary of last episode's events.
Special FBI Agent Dale Cooper (Kyle MacLachlan) tries to reason with Audrey Horne (Sherilyn Fenn): she can't stay to live with him on his hotel as it would be wrong, as he intends to follow the values he's been sworn to when he entered the FBI, and that in spite of liking her very much. He's sympathetic nevertheless, and intends to listen to whatever problems Audrey has got. She asks him whether he's got any secrets, because Laura used to have many.
Lucy Morgan (Kimmy Robertson) is doing some taks at her desk, so that she's a bit rude towards Andy Brennan (Harry Goaz), the man she is supposed to be dating. Cooper comes in and he talks about the link between Laura, violent man Leo Johnson (Eric Da Re) and the other girl who appeared walking numbly after having survived the same circumstances as Laura. The porn and hot-date magazine seems to be the link. Dr Will Hayward (Warren Frost), Deputy Tommy 'Hawk' Hill (Michael Horse) and Sheriff Harry S. Truman (Michael Ontkean) listen to him. They also realise that there is a link with the strange pub/brothel One Eyed Jacks.
Bobby Briggs (Dana Ashbrook) appears to offer some consolation to Shelly Johnson (Mädchen Amick), who recounts how she shot Leo, who in turn left home wounded and furious. Bobby offers some protection to her, but we don't know up to what point he will be able to deliver.
Madeleine 'Maddy' Ferguson - late Laura Palmer's cousin - (Sheryl Lee), rebellious biker James Hurley (James Marshall) and Donna Hayward (Lara Flynn Boyle) listen to the tapes Maddy has found of recorded Laura's thoughts. She speaks as in poetry, talking about her loneliness. Meanwhile, Audrey is working in exactly the same role as Laura used to have in her father -Benjamin Horne (Richard Beymer)'s department store, but her real intentions is to work undercover and investigate the possible relations between the job and Laura's death. Hidden in a closet, Audrey discovers that her boss in-line Emory Battis (Don Amendolia) offers jobs to young girls in exchange of sexual favours. In fact, she listens how he subtly proposes to a girl, Jenny (Lisa Ann Cabasa), who accepts the job with its "consequences". Audrey tries to talk to Jenny when she is leaving.
Cooper visit Hank Jennings (Chris Mulkey) while working on his wife Norma (Peggy Lipton)'s diner. He pretends to be reformed in order to recover his drug business, which Leo has let go to the devil.
Jocelyn Packard (Joan Chen) is worried about Twin Peaks' sawmill. She is a bit jealous and tells Sheriff Harry S. Truman (Michael Ontkean) her suspicions about her ex-mother-in-law Catherine Martell (Piper Laurie) and Ben Horne's intentions of setting fire to the sawmill. Jocelyn offers Harry some proofs this time, showing him some photographs of the lovers in a motel. Harry confides on Cooper, who decides to investigate the matter.
Audrey keeps on calling Cooper, but he's with Sheriff Harry S. Truman seeing to Jocelyn Packard's problems. Catherine is reading some documents showing that Jocelyn is the fiduciary receiver of a million dollars in case of reception of the insurance owner. Catherine understands that Ben and Josie are plotting to kill her. She refuses to sign the papers alleging that she's noticed some changes and that she should question her attorney concerning them. She tries to seduce the insurance man, Walter Neff (Mark Loventhal) who is ambitious and sees a big opportunity in servicing her in spite of all her strange conditions.
Audrey writes a letter for Cooper, as she can't contact him. Leo kills Waldo the mynah. Cooper hears the record of Waldo's voice. The law enforcers go to the One Eyed Jacks. Blackie O'Reilly (Victoria Catlin) goes directly to talk to them. She immediately realises that they are cops. They gamble, drink and record Cooper's narration of events in a recording machine watched by Hawk.
Maddy tries to leave the home where she's staying without being heard, but Leland (Ray Wise) watches her. Donna, Maddy and James meet, and James wants to talk to the now blonde Maddy leaving Donna alone. Jerry (David Patrick Kelly), Ben and the Icelandic tourists are having a party. Ben asks Jerry about Jacques Renault (Walter Olkewicz) and he says that he will take full responsibility. Ben tells Jerry to entertain the drunk Icelandic people while he calls Jocelyn, who talks to him with Hank Jennings (Chris Mulkey) at her side.
Audrey goes to the One Eyed Jacks to find a job undercover. Blackie interviews her. She offers Audrey a job eventually. Meanwhile, Cooper and Big Ed Hurley (Everett McGill) enter the place undercover. Big Ed has left Nadine Hurley (Wendy Robie), his one-eyed wife, alone at home, in spite of her feelings of being a monster towards herself.
Cooper is playing blackjack and Big Ed tries to hide his face from the new croupier, Jacques Renault. James phones Dr Jacoby (Russ Tamblyn) but it's Maddy who speaks, pretending to be Laura. She tells Jacoby to go to the door, and so he goes - defending himself with a small gun. It's a video of Maddy with a blonde wig pretending to be Laura, showing the day's newspaper. Maddy thinks that Jacoby has fallen for the trick. Bobby - hidden among the bushes - watches how Donna and James leave in a motorbike, leaving Maddy on her own. Bobby also confuses her with late Laura Palmer, especially because he stares wide-eyed to her back. Dr Jacoby thinks he recognises the place where Maddy "Laura" is in the video, so he leaves on his car full-speed. At that moment, James and Donna enter his office, as he was Laura's psychiatric counsellor.
Jealous Bobby puts the cocaine on the deposit of James' bike and says "say goodbye, James".
The last shot is of Maddy disguised as Laura being approached by somebody who is hiding - probably dangerous Dr Jacoby.
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