Christine gets cajoled into going to the neighborhood Christmas block party by Lucy, Matthew's old girlfriend that he's started dating again. It's a great party and Christine fits in well, but when she sees her neighbor's husband kissing another woman, she's confused. She tells her new friend who gets mad at her for being so "judgy", turns out the neighborhood is filled with swingers.
Richard and New Christine introduce Ritchie to New Christine's crazy family Christmas celebration called Kinderclausen. It's got lots of weird traditions, like only new babies get store-bought presents. Ritchie doesn't like it, so to appease him, New Christine mentions another Kinderclausen tradition where the oldest child gets to name the new baby. Ritchie decides to name the new baby X-box 360, because that's what he really wants.
Also, Matthew and Lucy, only recently reunited, break up again because of Lucy's sense of reality: Matthew can't deal with the fact she truly believes in Santa Claus.