Katie tells Eric and Baker that someone else pulled the trigger. Eric runs down the list of Katie's recent poor decisions. When the GSR test comes back, Baker is informed that it is clean. Baker advises them to get security.
At Katie's, Quinn questions why Sheila is in the house. Sheila tells her she's an old family friend. She comments that Quinn is lucky to be Mrs. Eric Forrester.
Sally is still apologizing, but claims that was the old Sally, not new, tastes great, less filling Sally. She adds that Thomas means too much to her. Steffy rubs it in that Thomas means a lot to Sally and Spectra Fashions. Thomas claims he's excited about his future. Steffy counters that Spectra can't succeed without Thomas or his money.
Sheila asks Quinn if she wants her to tell Katie she stopped by. Quinn says she doesn't care. Sheila wonders out loud if they get along and Quinn tells her it's a long story. As Quinn leaves, Sheila says, "Perhaps I'll get another shot." Quinn turns around and questions what she meant. Sheila tells her, "to get to know each other better...or not." Shaken, Quinn leaves. After Quinn is gone, Sheila sees the telescope. When she looks through it, she spots the Forrester lanai.
Liam and Thomas make plans to double date again. Steffy and Thomas try to get to an understanding. Liam exclaims that Steffy is just being overprotective. Later at Forrester, Steffy tells Liam that her feelings toward Sally haven't changed. Liam talks Sally up.
At Spectra, Sally and Thomas reaffirm their love for each other. Thomas pulls out his...sketch pad and shows Sally the new logo he came up with for Spectra.
Eric comes home and tells Quinn what happened at the police station. Quinn wants to know if Katie was cleared. Quinn realizes she's still in danger. She shows Eric the binoculars she used to look at Katie's house. She relates the story of the woman who claimed to be a friend of the Logans, but didn't mention her name. Later, over martinis, Quinn casually mentions that Katie's friend Sheila is visiting. She puts together that Eric was married to a woman named Sheila that he never talks about.
Katie comes home. She looks through the telescope. She hears a voice, "Hello Katie." Katie says, "Gasp!" She wants to know why Sheila is in her house. Sheila tells her that unlike what everyone thought, she is not dead. She says there were crazy stories about her whereabouts and identity, but they were just stories. Sheila diverts Katie to talking about Will. Katie wants to know what she wants from her.
Eric tells Quinn that Sheila is dangerous, but not like her. Quinn is a good dangerous. Appropriate flashbacks of Sheila and Eric! Eric doesn't know if Sheila is alive, but he keeps saying how bad she is.
Katie walks toward the door and Sheila follows her. She asks about the telescope and wonders why it's pointed at the Forresters. Katie tells her about the shooting and how she was accused. She tries to tie it to Sheila's arrival. Katie picks up a poker. Sheila firmly tells her to put it down.
On the next B&B...