On the beach, Sawyer is arguing with Hurley, claiming that they should just wait on the beach for everyone else to return. Hurley thinks that not passing on a warning pretty much defeats the purpose of a warning, and everyone picks up their big guns in preparation for the trek through the jungle.
Flash-forward to Hurley, back in the nuthouse. He's kicking some guy's ass at Connect Four when a nurse approaches with his meds and the message that he has a visitor. Hurley looks over at the visitor -- it's Lance Reddick, from The Wire, looking kind of creepy. Hurley walks over to him, and he introduces himself as Matthew Abaddon, an attorney for Oceanic. Abaddon tells Hurley that Oceanic feels just awful about the difficulties he's having, and they'd like to help him out by picking up the tab for him to stay at a much fancier nuthouse. Hurley's been stepped on enough by The Man to know that this sounds like bullshit, so he asks for a business card. Abaddon seems to have forgotten all of his, wouldn't you know. Hurley starts to talk away, and Abaddon asks him, "Are they still alive?" The question, along the change in background music, cue Hurley to start yelling for a nurse. As orderlies come to subdue him, he sees Abaddon sneak out of the room.
Sayid's band of happy warriors is trekking through the jungle. It's night, but they planned ahead and brought torches with them. Hurley is falling behind a bit, and Sawyer drops back to ask him if he's okay. It turns out that Sawyer's offering to talk to Hurley about the death of his closest friend on the island, but Hurley would rather not. His uncharacteristic empathy rejected, Sawyer rejoins the others at the front of the pack. And then Hurley stops for a second and completely loses sight of everyone. He starts hollering for the others, but nobody responds. A wind picks up, and we get lots of confusing cuts that are intended to tell us that Hurley is well and truly lost. And then he sees a cabin in a clearing ahead of him. Although the "Welcome to Jacob's Cabin" sign seems to have gone missing, you can tell that's what it is from the ominous whispering and the creepy glow coming from the window. Commercials.
In the jungle, Rousseau tells Jack (who has Ben trailing behind him on a leash) that Naomi's trail of blood has ended. Jack thinks this might mean Naomi just stopped bleeding. Since she apparently recovered from death and walked away with a knife in her back, that's not such a bad suggestion. But what it really means is that this was a false trail all along, just like Kate suggested. Ben: "Better call the boat and tell them she's getting a really big bundle of firewood." His continuing ability to be a bitch in the face of adversity is awe-inspiring. Jack reaches for the phone and discovers that he doesn't actually have it. He pretty quickly realizes that Ben knows something; what he knows is that Kate palmed the phone when she hugged Jack. Ben: "But look on the bright side. At least somebody around here knows what the hell they're doing." He shuts up before Rousseau clocks him again.