A bit Later, Walter sits on an exam couch, twiddling his feet and asking Astrid to watch Kashner for similar movement. Nothing's happening. Or rather, nothing's happening to Kashner. However, Walter is making some very strange noises. "Either a green unicorn just raced across the lab or I accidentally took some LSD," he remarks. Then he corrects himself -- must be mescaline. But as his reactions to whatever he's experiencing continue to venture deeper and deeper into "Jizz In My Pants" territory (to Astrid's increasing weirded-outness), he says he thinks he's figured it out. I'd say that's probably Walter's biggest rush of all, but I think we know better.
Back in Seattle, Olivia is holding the threatening note that Nayak must have just given her, and she promises to have it analyzed, while in the meantime there'll be a protective detail on his clinic and Det. Green will keep an eye on his house. They leave the office, Peter promising tough-guy-like that they'll catch whoever it is. "Then you can get back to your work." That sounds like a great plan, except for the part where Nayak gets back to his work. The minute they're gone, Nayak dials his phone and reaches a suspiciously anonymous answering machine. He tells it, "I showed them your damn note, so you might as well stop." Hmm, someone's not being entirely forthcoming.
Peter and Olivia are driving through the Seattle night while on the speakerphone to Walter, who's setting Peter straight on his theory. He says the chips aren't receiving commands, but transmitting data. Not just sleep, but all sensory information that passes through the thalamus. "Are you saying that Dr. Nayak's biochips are stealing dreams?" Olivia asks. Walter confirms it, and Peter remembers that Leeder's sleep journal indicated a lack of dreams. Walter explains that that's because they were being "siphoned off." Thus the brain couldn't recharge, leading to death by exhaustion. It's usually hard trying to determine the purest nugget of scientific bullshit in any given episode of this show, but I think we have a clear winner this week. Walter goes on: "What's more, I believe the chips have the ability to turn on a dreaming state while the patient is awake. Which would lead to paranoia, hallucination, and a complete inability to differentiate between reality and dreams." Peter asks the obvious question: why? Walter gets all dreamy, talking about what just happened to him without saying it happened to him, although Peter and Olivia don't seem to have any difficulty telling from his tone that he's speaking from first-hand experience. "It's really quite something," he says. Olivia realizes they're looking for an addict, and Walter thinks anyone exposed to it would be more like its slave. Good thing he's such an iron-willed guy, then. "We need to go back to the hotel," Olivia says. Peter asks, "What are you thinking?" Which is much smoother than saying, "All right!"