After Pacey blows Audrey off to study for his Stockbroker exam, Audrey joins Jack and Jen in the quest for the "best party of the year." However, on their way to the party, they run into Pacey who is on his way to a strip club with guys from his office. Even though Pacey explains, truthfully, that he wasn't given much of a choice (as the men he is with are his bosses and being invited was a bug coup for his place in the company), Audrey is notably hurt and leaves with Jack and Jen in tow.
Pacey spends the evening brooding over hurting Audrey but chooses to stay with the guys rather than hunt her down.
At the party, Audrey bitches about Pacey while Jen goes off on what a bad person she is to he-of-the-peer-counseling-group (aka CJ). While Audrey and Jen get hammered, Jack chats up the unexpected arrival: Professor Pretty Boy (PPB). Audrey gets more and more drunk, and the evening culminates with Jen saving her from a bad scene (with the help of CJ) when Audrey goes up to a bedroom with a frat boy. They take her back to the dorm where Pacey shows up and they make a tentative peace.
Meanwhile Jack continues to bond with PPB. He tells Jack that he just found out that his wife is pregnant. There is an evident tension in the Professor who seems kind of lost. When the prof gives Jack a ride home, he admits that he came to the party looking for Jack - seemingly offering Jack an unspoken proposition, which seems to shock Jack and leave him noticeably shaken when the prof drops him off.
Elsewhere, at Hell's Kitchen, Joey and Eddie argue over Jack Kerouac and anything else they can think of. They get a call for a food delivery. It's across town ... on a movie set ... where Dawson is dealing with the diva actress that he dumped to be with Joey. She gets drunk and falls apart on the set and when she runs into Joey who has to talk to Dawson to get payment for the food, she comes unglued. Joey is upset, the Diva mocks Dawson, and it culminates with her refusing to leave her trailer until Dawson is fired. Todd is forced to send D packing, and on his way out, the Diva witnesses he and Joey talking. She later gets Dawson his job back, telling him that he really hurt her - but that watching him with Joey, it was clear that she hurt him even more.
Back at Hell's Kitchen, Joey and Eddie go back to their Kerouac discussion. Eddie says that the best part of the book is its portrayal of life lived on the impulse - leading Joey to impulsively kiss him. But she is upset when he tells her that he wouldn't mind her kissing him if it was about him, but he doesn't want it to be about being angry at someone or trying to forget someone (i.e. Dawson). He goes to get his coat to take her home.