The black title screen tells us it is now TODAY. And present-day Michael, arm in a sling, is outside, holding a piece of pink notepaper that if we were to pause and stare until our eyeballs dry out and fall from our eye sockets we could probably make out through the paper, reading backwards, what is written, but I'm trusting we'll know by the end of the episode. And then he lights the piece of paper on fire.
The opening of the Swan station door behind him startles him. It's just Jack, brusquely wondering what he's doing out there. Michael says he's just getting some air, and Jack motions him into the hatch, because "we should talk." Has Michael been found out? Is that why Jack sounds almost hostile? No; you're forgetting that Jack sometimes acts like the Boss of Everybody for no particular reason.
Inside, Libby and Ana-Lucia are still dead, plus covered with blankets. The blankets from the picnic that never was. Maybe that's why Hurley looks so bummed. Jack is demanding to know from Sawyer how many guns he has, and is less than pleased to find out Sawyer has "only" eleven. "In case you forgot, they took five of them right off us," he says. Hey, that's right. So when Michael says the Others' hatch was being guarded by two guys with two guns, "and two guns is all they have," isn't that like insta-bullshit? I mean, that slipped by me too, at first. But I'd like to think that if this weren't just a television show, and my life actually depended on this shit, I'd keep better track.
And Jack asks Michael how long it would take to get to the Others' camp, and Michael says if they left right now, moving fast, middle of the night tomorrow. He wants to go right now, just the five of them, because the Others have no idea he knows where they are, and won't be expecting them. Jack says five isn't enough, and they argue, because Jack figures Michael isn't in the best place to make decisions for everybody. "You got a son, Jack?" snaps Michael, like ISN'T THAT JACK'S POINT, MICHAEL, and Jack is backing off when Hurley interrupts with, "They're dead!" like slow reaction, there, Hugo, and everyone looks at him, kind of all buzz-killed. "Ana-Lucia and Libby are dead! I mean, we haven't even buried 'em, yet." Jack strolls over, pats Hurley on the shoulder and says he and Hurley will take Libby, and Kate and Sawyer quickly agree to take care of Ana-Lucia. Jack tells Michael to wait here. They'll bury the women tonight, and then figure out what to do. The undertakers get ready to go to work, while Michael stares at the bloodstain on the floor, showing no pride in his handiwork whatsoever.