For a while, Olivia seems to be having a grand old time, swiveling around on chairs, playing with the puzzles -- and then the lights go out, which is when Olivia starts to panic. She pounds on the door, yelling for Walter to let her out. Then she hears some sort of whispering, and wants to know who's there, and when the lights come on, Nick is lying on the floor, head bloodied, looking very dead. Olivia starts to scream, and then flames explode out of her and we go to commercial.
When we come back, we're at the Bishop household, where Peter is using zeppelin lingo while playing with his new airplane: "Approaching the building, requesting clearance to dock." "Oh, the humanity," that kind of thing. Elizabeth's more worried about the sounds of sirens she's hearing. So she foxily picks up the phone and dials, but she gets a busy signal. A busy signal! Remember those? So she tells Peter to get his coat.
Over at the daycare centre, Walter is wiping the fake blood off of Nick, who says, "I don't think Olive thought the joke was very funny," but there's no way Walter would ever dumb down his material to pander to the audience. With Nick tended to, Ashley comes in, and Walter says they're on the right track -- that the part of Olivia's brain that lets her do this must be the same part that lets her cross over. It must be? Ah, assumptions. Always making for great research. "But I'm still missing something," he says. True, and he's about to find out what, because Ashley tells them they've got another problem.
Outside, Elizabeth arrives with Peter, and she runs into Ashley who tells her that there's been a small fire, but everything's under control. Elizabeth can tell Ashley's not being straight with her, so Ashley says that Olivia Dunham has gone missing, but Walter and the others are out looking for her, and she's sure everything's going to be fine. Yes! We're at a daycare where a couple of insane geniuses are conducting drug trials on children, and one of them is an abused girl who they are emotionally traumatizing to see if she can switch between universes so they can bring back your son who is from the other universe, so they got another kid to play dead so she freaked right the fuck out and caused a fire WITH HER MIND and now she's missing. I think we're probably going by a fairly loose interpretation of the word "fine."