The police look for James in the Marsh murder. Bobby and Shelly tell Truman Leo escaped and Bobby reveals that he saw Hank shoot Leo the night the mill burned. Albert returns to Twin Peaks with information on Windom Earle, and ends up looking at Josie for the murder of Jonathan and the attempted murder of Cooper. Nadine 'breaks up' with Ed. Dr. Jacoby, Audrey, Bobby and Jerry try to end Ben's fantasy life. Donna and James escape from the Marsh home. Pete offers to help Cooper force a stalemate with Earle. Earle holds Leo as a slave. Shelly comes back to work. Eckheardt tells Catherine he wants Josie back. Earle leaves a 'present' and another omnious message for Cooper.