Air Date March 11, 1997. After finally escaping Josh's abuse, Megan's life suffers more when she is evicted from her own house after word spreads of her arrest (and past life). Meanwhile, Chelsea stays with Matt at his place where she proves too much for him to handle. An eccentric customer sues both Sydney and Samantha after injuring herself at the boutique shop when a display falls on her, courtesy of Sydney's carelessness. Word gets out about Taylor's affair and past history with Peter after Alison overhears an argument between her and Kyle. Kyle's brief affair with Sydney sets off a chain of events among the tenants.

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Air Date March 3, 1997. Josh continues Kimberly's plan to break up Megan and Michael when he plays all three of them against each other and sets Megan up to be arrested for solicitation to make it complete. Meanwhile, Matt's angry and rebellious 16-year-old niece, Chelsea, arrives in town for the funeral of her father (Matt's older brother), and causes concern for Matt and his mother. After a torrid night with Craig, Amanda realizes her mistake and rejects him, but he becomes oblivious to it and still wants in on a relationship. Taylor's world comes crashing down around her after Nick gives Kyle more proof of her and Peter's affair, in which he throws her out of his apartment and forces Nick to leave town after he beats Peter up.

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Air Date Feb 24, 1997. A nearly broke Craig moves into #8 apartment at Melrose to continue his pursuit and revenge against Amanda. Meanwhile, Josh introduces himself to Michael and threatens to expose Megan's past life at a hospital benefit, which all turns out to be Kimberly's plan to break up Michael and Megan. Peter and Taylor plot a dangerous scheme to steal Nick's incriminating photos of them together when Taylor drugs him long enough for Peter to sneak into his apartment to take the pictures. Undaunted, Nick and Craig switch to "Plan B" where Craig informs Amanda of Peter's liaison with Taylor, and she finally gives herself to him.

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