When we come back from the ads (which include one for Sanctuary that makes it look like fun), Michael is getting yelled at while KITT is getting looked at in the green-laser spinny thing. Alex interrupts the fun to report that a US prototype satellite has been broadcasting encoded Chinese... something. There's more geobabble (that's a word I just made up; it's like technobabble but with more country names and less "reverse the polarity") and the point is that they think that the Changs are a front for a smuggling operation. This job, like all jobs, is vital to the security of our nation. Sarah continues to complain while tapping on something that looks like one of those portable dealies that the UPS delivery people make you sign.
Later, or possibly meanwhile, the Changs are in the parking lot of that bar yelling at each other. Apparently they needed that car, and the one that wasn't racing feels that it has been treated poorly. Ian claims that he shouldn't have lost, because the car changed in mid-race. Michael shows up out of nowhere to mock this claim and demand the car he won. Of course, that car is a burnt-out wreck that's been left by the side of the road, but it's the principle of the thing. Michael suggests taking a different car, which is met with threats of being buried in the desert. Finally, Michael gets around to doing his job, which somehow means that he wants to be sponsored as a driver. But didn't his car get burnt? No, because here's Sarah with KITT now.
After some weird come-on lines ("Mind if I look under the hood?") KITT, Sarah, and Michael drive off. KITT continues to comically misunderstand the difference between a "big dog" and an "alpha male". Sarah considers this macho bullshit, but Michael thinks it's better than KITT going to meditation class and "getting in touch with his inner Prius." Take that, hybrid cars! KITT proceeds to mess with Michael's head by talking in a female voice to remind him that a car is technically neither male nor female. Unless you're talking about the one in My Mother, the Car. And you're probably not.
Back at the bar, which is populated almost exclusively by scantily-clad women with a few friendly bikers thrown in for atmosphere, Michael and Sarah want a drink. Sarah asks for "Your best single malt, neat," which causes the bartender to say that she knows her Scotch. That doesn't mean she actually knows anything about Scotch, does it? She's just asking for the best stuff; the real test comes when she drinks it and starts noising off about "a hint of peat in the nose" or whatever. Sarah chats with the bartender, who was in Special Forces with Michael. He was also in prison for something or other.