At the Palace, Lily takes Chuck by the arm: "The bastard is untouchable!" She admits she's willing to get dirty, and we skip to a few minutes later, after Chuck's explained some of the other stuff he's been up to, like trying to buy anthrax with Jack's credit card ("Black market isn't what it used to be") and getting him on Megan's List ("If only his apartment were a few blocks closer to a playground"). Lily suddenly reverses her position and goes back to wanting to do this legally. "I've put calls in to Jack's business associates in Australia. He's not the most upstanding citizen. I'm sure we will find something." Chuck's still quiet. "You know, I... Um, I thought I lost you the day of the funeral, and... I'm sorry that Jack's the one to bring us back together. But I'm glad that we're doing this."
Chuck gives her the Wrap It Up gesture, like to Stop Having Emotions, and suggests crashing a plane with Jack in it. "The Bass jet is kind of expensive, Charles," she laughs, and he brightly reminds her that it's insured. She grins at him while answering her phone, but it's Rufus, and even though she starts off strong ("Yeah, that would be fine, I can't really talk right now") soon enough her love feelings get the best of her, and she calls Rufus by name. Chuck busts a 180 and starts yelling about how both she and Rufus are whores ("You're actually going to take your half-price hustler out on the town tonight!") and how insensitive she is to be taking her "mistress" out in public a month after Bart's death, and then wraps it up himself: "You say you want to be family, but if you really meant it, you wouldn't parade your mistress in public. You'd have some tact, some respect... I should have known from your history I couldn't count on you. You think of yourself. Your kids and my dead father are proof of that." He buttons his jacket officiously on standing and takes off, and Lily's sort of bummed? But not as bummed as she would be if he wasn't sort of ... right about all of it.
Dan's talking to some St. Jude's boy, spots Serena and comes running over so he can geek out about Yale, but she's too busy watching B and her girls plotting darkly against Miss Carr, so she just wanders away -- obviously preoccupied -- in the middle of the big self-obsessed nothing he's yammering about, and she's like, "Excuse me a second," and he fully goes, "Not really!" Like she's not excused. "I know that look," she says to B: "You're up to no good." Blair informs Serena that "good" is subjective, get a dictionary, and Serena realizes that this is about Queen B's B paper.