While watching Mr. Smith Goes to Washington, Pacey wants Dawson to stop watching the old movies, but Dawson sticks up for the old movies. Pacey tells Dawson that he is Mr. Smith and that he is happy not being a good guy all of the time like Mr. Smith. Jen crawls through the window and passes out. Dawson and Pacey rush to get her ready for bed while she passes out.
Dawson comes downstairs and sees his father in the kitchen who tells him that he is packing more of his stuff to take from the house. Mitch asks Dawson if he would like to hang out later, but Dawson refuses. When Mitch keeps going about thinking normally, Dawson tells him that he just can't continue like things were before. Mitch hands Dawson a letter and Dawson opens it up outside and is instantly happy. Pacey is in the counselor's office and gets the bad news that he is an academic loser. The counselor gives him a way to at least complete high school, but thinks that Pacey will just be a loser for the rest of his life. Dawson rushes to Joey and tells her that their movie won the prize at the film festival. The prize includes $2,500 to use on their next movie and that they are going to a winter workshop. Joey tells him that she is too busy to go to the workshop, but Dawson eventually understands and walks off. Jack walks up to Joey and apologizes to Joey for kissing her. Joey tells him that she is just trying to figure things out and that she is not mad at him, but mad at herself. Jack wants to hang out with her, but the bell rings and they rush off to class. Jen approaches Dawson and he shows her the prize for the film festival. Jen feels honored that she was in an award-winning film and wants Dawson to write her better lines. Andie is upset that the guidance counselor is not helping Pacey with his future, but she gives her speech a little too loudly and the rest of the cafeteria overhears. Chris approaches Jen and asks her to go to a party with him, but after he leaves, Dawson complains that she is getting drunk every night and should slow down. Pacey tells Andie that he is a joke and that he has gone too far into loser-ness and doesn't know how to change. Andie tells him that heroes are made, not born.
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