This one starts with an awkward elevator encounter between Veronica and Logan. Veronica’s heading up to see Duncan, who’s been totally out of it since Meg died. Logan is surprised to hear Meg had Duncan’s baby, but Veronica gets a bigger surprise when she sees Kendall coming out of Duncan’s room … naked. Veronica leaves and Logan banters with Kendall, who claims Duncan invited her. At school, Veronica gets some unwanted advice from Dick (Logan has already blabbed to him about Kendall), who tells her she shouldn’t worry about a rich guy like Duncan having the occasional meaningless quickie. Veronica gives Duncan shit and he gets mad, saying he’s trying to figure out his feelings about Meg. Veronica reminds him she’s alive and she’s his actual girlfriend, but he gets pissed off and dumps her.
At home, Veronica goes into full emo mode, playing the Virgin Suicides soundtrack, which tells her father something bad has happened. He finally gets tired of all the moping and tries to talk to her, but it’s too soon. Meanwhile, Logan and Weevil are still working together to figure out who really killed Felix and what the connection is to the Fitzpatricks. Weevil has it narrowed down to Bootsy and Hector, since they were the last ones on the bridge with Felix and the unconscious Logan that night. Weevil figures whoever killed Felix is in business with the Fitzpatricks, dealing dope. Logan says he can help root them out.
Wallace drops by to try and get Veronica out of the doldrums and we find out the reason he came back from Chicago is because his school there held basketball tryouts last year, so he couldn’t get on the team. He came back to Neptune because he really wanted to play. They’re interrupted when Sheriff Lamb shows up to tell them Duncan has taken his baby daughter and disappeared. Lamb arrests Veronica as an accomplice. At the police station, she’s picked out of a lineup (which seems to be mostly hookers) and her dad calls Cliff to represent her. The witness says Veronica sold him some diamond earrings (that belonged to Celeste Kane) and Lamb figures she gave Duncan the money to help him escape with the baby. Keith is pretty worked up and Veronica admits Duncan did give her the earrings to sell, but the money was supposed to go toward hiring a lawyer so Duncan could sue for custody of his daughter. His parents refused to help, so Veronica went along with it. Keith tells her she’d better answer all lamb’s questions and be as helpful as possible, since she’s looking at kidnapping charges here.
Celeste is in Lamb’s office with the sleazy private eye Vinnie Van Lowe, who Celeste has hired to find Duncan and the baby. Celeste wants Veronica’s ass in jail, one way or another. Lamb tells Veronica she’d better give him everything she can think of about Duncan: his favourite haunts, any fake IDs, places he might go, whatever. Veronica reminds Lamb what terrible parents the Mannings are, but he’s more worried about his own career than what might happen to the baby. Meanwhile, Logan asks Dick to try and score some Ecstasy from a couple of Weevil’s biker pals. At the station, Veronica gives Lamb everything she can think of and runs into Vinnie on her way out. Vinnie tries to slip a bugged pen into her bag, but she figures it out. He also offers her $5000 to squeal on Duncan, but she insists she doesn’t know where he is.
At school, Veronica is doing some search engine stuff in computer class and finds out Wallace lied about not playing basketball in Chicago; he was actually having a hell of a season, so why did he come back to Neptune? Dick gives Logan the Ecstasy, which he got from Hector. Logan passes that on to Weevil. At the station, Lamb has ordered checks at the Mexican border (which is really backing up traffic) and he gets a visit from two FBI agents (Morris and Wills). Lamb doesn’t like ceding authority to the Feds, but one of the FBI agents (Morris) is Xena; yup, it’s Lucy Lawless (a blonde Lucy Lawless) and she immediately lets him know who’s in charge.
Veronica drops by to give Lamb some more info and he warns Morris and Wills about how slippery she is. Morris is sure she can handle a teenaged girl. Veronica tells Lamb about Duncan having an online account that she just remembered and Morris says their tech guys can break the password. Morris seems to find Veronica’s sarcasm toward Lamb amusing and Veronica hears how dismissive Morris is toward the Sheriff. Lamb suggests he might apply to the FBI, but Morris points out that he’s not really qualified. Weevil confronts Hector about the Ecstasy he sold Dick and Hector tries to make like it’s no big deal. He denies being involved with the Fitzpatricks and says he just bought the X off some other rich white dude so he could sell it to Dick. Weevil asks for a name.
At the station, the FBI cracks the password in no time and finds out Duncan bought a sailboat not long ago … with cash. Veronica admits that Duncan’s been sailing his whole life and Lamb says the Coast Guard is already looking for the boat. They listen in as the Coast Guard finds the boat and boards it, but Duncan isn’t there. There are dirty diapers and empty food cans and Morris wonders if Duncan might’ve jumped overboard, given his mental history. Veronica says Duncan wouldn’t kill himself, and he definitely wouldn’t kill his baby, so someone must’ve picked him up.
Outside the station, Veronica notices a van and realizes Vinnie is watching her. (They do the “Morning Sam, Morning Ralph” thing from the old Looney Tunes cartoon). Veronica tells Vinnie he should be looking for Duncan instead of following her. She gives him a letter from her to Duncan, saying it might come in handy if Duncan gives them any trouble when he’s found. The letter is marked “personal and Confidential”, so naturally Vinnie opens it two seconds after Veronica leaves.
At school, Weevil confronts the guy Hector got the X from (who turns out to be Sean, the thieving poker player), but he denies working for the Fitzpatricks, saying they’re way too intense for him. After Sean leaves, Weevil and Logan discuss his assertions and ultimately believe him. Logan suggests maybe Felix was the one who was in bed with the Fitzpatricks and Weevil tells him the Fitzpatricks made Felix’s big brother “disappear”, so he’d never work with them. At school, Veronica asks Wallace why he lied about his reasons for returning to Neptune. Wallace tells her he was with a teammate in Chicago (a guy named Rashard, who’s like the next Lebron James) and they were coming home from a party one night when Rashard ran over a homeless guy and took off. Rashard’s uncle (also his agent and manager) told them to forget about it, but Wallace couldn’t live with the guilt so he came back to Neptune hoping to forget. He was embarrassed to tell Veronica because he knows she’d have done the right thing.
Veronica gets a call from Duncan and the FBI is monitoring her phone, so they home in on his location, a couple hours north. Lamb is all het up to go, but Morris tells him the Feds will handle it themselves. Meanwhile, we see Veronica going to an empty house in Neptune and guess who’s there? Yup, it’s Duncan, and they look pretty friendly for a couple that broke up. Turns out everything was bullshit: Kendall, the public break-up, the sailboat, the fake phone call, all of it. (Apparently Kendall and Logan didn’t even know they were part of the whole scheme, they just played their parts as predicted.) Duncan is ready to take the baby and get out of the country for real and Veronica supports him, even though she knows they can never contact each other again.
At the police station, Lamb finds out Veronica’s bank card was used down at a resort in Mexico and decides to head down and get her and Duncan himself, to show the FBI how it’s done. At home, Keith is looking for toilet paper and finds a stash of diapers in Veronica’s closet. He starts rifling her room while leaving a message on her voicemail, and finds her file on Meg’s sister and the crazy shit her parents put her through. At school, Wallace is confronted by a reporter from Chicago who’s on the trail of the kids who ran over the homeless dude. The guy isn’t dead, but h’s paralyzed, and the reporter asks Wallace what kind of man he plans on being.
Lamb heads south, getting waved through the border by the cops, and goes to the little resort where Veronica’s card was used. He’s told to check a nearby restaurant. At home, Keith confronts Veronica, giving her shit for taking such a risk. He’s pissed off that she played him along with everyone else and says he still loves her, but isn’t sure he can ever trust her again. The tension is interrupted when Morris and her team show up to search the place. Up north, they found the tape recorder with Duncan’s fake conversation on it and say a “cute blonde girl” was spotted up there. Luckily, Keith got rid of the diapers in the closet, so they find nothing, but Morris reminds them that kidnapping cases don’t just go away.
At a tattoo parlour, Weevil finds out Felix wanted to get a tattoo of his new girlfriend … Molly Fitzpatrick. In Mexico, a surfer dude tells Lamb he saw Duncan a couple miles down the highway, but didn’t see a girl with him. Lamb heads out to check, passing some hitchhikers on the way. When he crosses the railway tracks, his trunk pops open, but when he goes to close it he finds it full of empty water bottles and food wrappers. He realizes Duncan must’ve been in his trunk when he came through the border and turns around, but it’s too late. Duncan (wearing a fake beard, hat, and Kurt Cobain wig) was one of the hitchhikers back near the restaurant. A truck pulls over to pick him up with some familiar faces inside: Vinnie Van Lowe is driving and Astrid (Celeste’s cute blonde assistant) has Duncan’s baby.
Yeah turns out Astrid was the blonde spotted up north and she and Vinnie must’ve brought the baby across the border. (The baby likes Astrid because she looks so much like Veronica.) Duncan paid Vinnie $30,000 to switch sides; I assume the offer was made in Veronica’s “confidential” note that Vinnie read. They pass Lamb on the way to freedom, but he’s not looking for three people in a truck, so he doesn’t even slow down. As Duncan heads south with his daughter, Veronica sticks a fortune he once gave her from a fortune cookie to her mirror … “True love stories never have endings.”