Ella clomps off, proclaiming that it "smells funny in here." Walter doesn't even know (well, doesn't remember) who Ella is, so Astrid reminds him, and Walter's staring after Ella like he's thinking her head would make an excellent bong. Olivia explains that Rachel had to go to Chicago for the weekend, so she asked if Olivia could look after Ella, and Olivia is in turn asking Astrid to watch Ella for a few hours, correcting Walter, who responsibly says he couldn't possibly look after anyone else: "I'm well into Phase 1." Astrid explains to Olivia: "Walter just smoked something called Brown Betty."
Well, someone should be watching Ella, as she's about to get kicked in the head by Gene, and it's Walter who goes off to scold Gene for licking.
And then Ella and Walter play a game called "Operation," or, from the way a shaky Walter plays it, "Next-of-kin Malpractice Lawsuit." Ella admonishes Unky Walt for killing the guy: "You're not supposed to touch the sides! What kind of doctor are you? You're not even trying!" Hee! She has that indignant only-child bossiness that girls -- like my own three-year-old daughter -- have. Walter looks at the heart he just pulled out of the patient while Ella gripes that all Walter has done is eaten her snacks, talked about "weird stuff" and giggled at everything. Ella, think of it this way: it's just practice for your first college roommate. So she suggests he tell her a story, but Walter says he's not very good at stories.
"Didn't you used to tell stories to Peter?" asks Ella, and Walter and Astrid both get a little frowny-faced at the mention of Peter's name. Walter sadly says Mrs. Bishop did, but he was always too busy with his work.
Undaunted, Ella asks Uncle Walter if his own parents told him stories, and now Walter gets very excited: "My mother loved Chandler and another writer called Dashiell Hammett. She loved detective stories. Oh! And musicals! She adored musicals! She often would dress me up to play parts in plays at school." He adds that he was "roughed up" a lot as a child.
So with a little prompting from Ella and Astrid, Walter launches into a story about an accomplished detective who decided to retire because there was one mystery she could not solve: "How to mend a broken heart."
Annnnddd this is when we go into the drug-hallucination/dream-sequence/musical bullshit that I've been dreading since last week. Good thing I've decided to go into it with such an optimistic attitude!
Let's check in with O. Dunham, behind an office door marked "Private Investigations." She's done up like a proper 1940s dame would be, all Veronica Lake, and she's looking at a framed picture of John Scott, whose dark suit could be present-day for all we know. Rachel comes in, apologizing to "Miss Dunham" but she's left her several messages, hoping to hire her: "My boyfriend, he's gone missing." Olivia says that she's "kinda busy" as she pours herself a drink. Also just like present-day!