Locke continues leading his group to the cabin. Sawyer asks him what he's talking about with the whole "I saw Walt" thing. Locke denies that it was a dream: "It was Walt. Only...taller." Sawyer: "Taller? What, like a giant?" Or like an adolescent with a couple of years' growth? Locke claims that Walt told him to prevent Naomi from bringing the rest of her people to the island, and that he didn't really ask any follow-up questions since he was lying in an open grave with a bullet in his gut that was conveniently placed there by Ben. Sawyer is as surprised as any of us that Locke was shot only a few days ago, but Locke shuts him up by raising his shirt and showing him the wound where the bullet entered his body -- and the other wound where it left. It apparently went right through where his kidney would have been had it not been stolen. I guess his father also stole most of his abdominal veins and arteries, and maybe a small chunk of his intestine. Locke's little show-and-tell seems to have shut everybody else up.
Jack, Kate, and Daniel have arrived at a rocky shoreline. Daniel sees a fellow Boatie lying on the ground near the ocean and starts calling his name (which is Miles). Jack runs down to Miles and starts to examine him (as a doctor would), when Miles pulls a gun on Jack. For my own sanity's sake, I'm going to assume that Miles was not just lying there for hours waiting to spring this ambush on someone, but that he had his own phone and knew Daniel was moving in his direction. Even though we never actually see that second phone. Oh, and Miles calls Jack "handsome." Daniel tries to explain that everything is fine and that gunplay is really not required. Kate slowly sidles up to Daniel, her eyes on his gun, but Miles tells her to back off. Jack uses Kate's name, so Miles decides to ask her where Naomi is. He's not put off by Kate's "who now?" non-response, referring to Naomi as the woman Kate killed. Kate has a couple of minutes to think up a good answer, as we cut to commercials.
Flashback! (I know some people think these might be flash-forwards, and I acknowledge that's a possibility -- but it seems highly unlikely to me, as Naomi knew about the discovery of the wreckage before she arrived on the island, and each flash-whatever scene in this episode is keyed to the discovery of the wreckage.) Miles parks in front of a cute bungalow in a modest-looking neighborhood while someone on the radio talks about the discovery of the wreckage. Miles takes a small suitcase out of this trunk, and knocks on the door of the house. A middle-aged black woman opens the door. He introduces himself as Miles Strong (or "Straum," maybe?) and reminds her that they spoke on the phone. She lets him in; as he enters, the camera pans across a photo hanging on the wall of a young black man. Miles asks the woman (Mrs. Gardner), "Which room is it?" She tells him it's upstairs, and he tells her he gets paid in advance and that the price is $200. So far, he's sounding like a prostitute. She points out that he quoted her a price of $100 (so make that "a cheap prostitute"), but he tells her the price went up after he learned that her grandson was murdered. That seems to make sense to Mrs. Gardner, and she fetches the cash -- which he crassly counts in front of her. He unpacks a small vacuum-cleaner-looking thing from his suitcase and tells her not to enter the room, regardless of what she hears. And then he heads up the stairs.