Outside, it's dark -- either because the sun set or because of Smokey, I can't be certain. In the trees, we see Smokey coiled up in a big knot and we can hear all kinds of sounds (screams, gunfire, metallic groans) and see flashes of light. A Boatie comes running out of the trees towards them, but a tendril of Smokey reaches out and drags him back. Hurley and Miles realize it's a good time to get out, and they lead the rest of the Losties in the other direction. Ben tells Locke that he'll catch up with him in the trees; but first, he wants to say goodbye to his daughter. And then the sounds of Smokey recede off in the distances as Ben walks over to Alex's body, closes her eyes, kisses her on the forehead, and sobs. Commercials.
Back at the beach, Daniel has rigged up the phone to broadcast Morse code. He taps out a message, and Jack asks him what he's saying. So Daniel speaks the words as he spells them out: "What happened to the doctor?" There's a long series of beeps in response. After it finishes, Daniel tells them, "Okay, they didn't exactly say what happened to the doctor, but your friends are okay and the helicopter's coming back in the morning." Kate looks relieved, but Bernard tells Jack, "He's lying. What the message said was 'What are you talking about? The doctor is fine.'" Oh, Daniel -- don't cross a ham radio geek. Jack asks why Daniel has been lying to them, and then grabs him by the shirt and asks him, "Were you ever going to take us off this island?" Daniel: "No." Jack doubles over in pain, but walks away before anyone can help him.
Near the Barracks, Locke's crew have stopped to light some torches. Sawyer tells Miles he's free to rejoin his pals from the boat, but Miles would rather hang out with the Losties for the time being, what with the killer monster on the loose. There's a noise in the trees, and everyone pulls their guns, but it's just Ben. Locke tells Ben that he's sorry that Alex died, and then goes on, "That being said, you lied to me." Which specific lie are you thinking of? Oh, it turns out it's the lie where Ben said he didn't know what the smoke monster was. Ben tells him he can ask Jacob all about Smokey when they go to the cabin. Sawyer's not happy to hear that there's some other dude who's going to be giving them even more instructions. He's starting to realize how stupid it was to join up with Locke in the first place, and he decides to head back to the beach. He tells them that Claire is coming with him, and then decides he should ask her if that's what she wants. It is. Miles and Hurley decide to join them. Everything's fine until Hurley starts to walk away, at which time Locke pulls a gun and tells them that Hurley has to stay with him and Ben. But Sawyer's got a gun too, so it looks like we've got a standoff. Hurley would rather be left out of the gunplay, but Locke tells him they need him to find the cabin. Sawyer seems prepared to ventilate Locke and/or Ben, but Hurley tells them to put the guns down; he'll go with Locke. Sawyer puts his gun down, but promises to kill Locke if Hurley is harmed. Sawyer, Claire, Aaron, and Miles leave. None of the unnamed Losties seem to have survived the attack. Or if they did, they're still cowering in fear back at the Barracks. When everyone else has left, Locke picks up his pack and asks Ben which way they should go. I thought Hurley was the one who knew how to find the cabin?