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Part two opens with Terry telling Guy and Karina that his biological mother had just dies recently and his father has never really been there for him. He then asks if Karina and Guy will re-adopt him. Guy and Karina immediately respond with a yes. And Terry becomes their adopted son once again. Guy and Karina are overjoyed to have their new teenage son and infant daughter together and have become a family. However, Kendra is less than pleased and fears that Teryy will break Guy and Karina's hearts again. Floyd then has a meeting with Lyle and offers to pay him 50,000 simoleons if he will leave Id and town. Lyle rejects the offer and runs off to tell Ida of her father's back-room offer. Ida confronts him.

Gladys then notices the immense attraction Regan has towards Willa. She then makes brekfast for her, Regan, Beck and Willa, but then she purposely leaves and drags Beck with her leaving Regan and Will to have a romantic brekfast for two. Neve sinks into a depression and cannot stand to see Alton so happy and her so miserable. She then decides to sabotage his relationship with Adia and win him back using Roeper as a pawn in her game. She then begins "running" into them on their many dates and ruining them with her forced company and begins dropping Roeper off with Alton as the most in-opertune time. However, her plan appears to be failing when Adia begins bonding with Roeper.

Charis, tired of waiting around for Werner to die, begins an affair with their male maid, Rudy Saunter. Rita, Werner's ex-wife, suspects that Charis and Rudy have begun an affair and sets out to prove it to Werner, in order to keep her standing to get the money. She then tries to cool down the affair so Rita won't discover them. Then Armand, Elsie and Chet come to town for a visit. Charis offers for them to stay with her and Werner at Templeton Hill, providing cover for the affair. Elsie then catches up with her brother and sister, Floyd and Kendra. Carlton then joins forces with Floyd to expose Lyle. When they go to confront him again Lyle threatens to reveal Floyd's offer to the press, they back off. Floyd then realizes the fun boy he once knew is now gone...

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