Don groggily comes to, and from the bars in front of him and the people piled in with him, it's fair to assume he's in a drunk tank. He calls to a guard that he shouldn't be in there, and the guard agrees -- that he should be in Rikers Island, as he punched a minister. Don can't really argue with that, so he does the only thing he can, which is go back to sleep. Given that a toilet looks like too much to ask for, I guess it's good that anyone fucked up enough to land here probably wasn't drinking beer.
Peggy comes out of her office to see a couple boys we know to be Ted's kids running down the hall, and after Ted's voice calls that they'll have candy at the theater, Ted and Nan walk by. Nan gives Peggy a friendly greeting, but the only look Ted throws her way is one of vague terror. Once again, he is terrible at this, while Peggy starts that bobble-headed thing she sometimes does when she's trying to wrap her head around something.
Pete's also heading out, and when Clara comes upstairs with a yellow envelope in hand, Pete tells her he's going to give his keys to the subletter. She shows him the telegram addressed to him, and when he tells her to open it, she obliges -- and then cries out in horror that Dot fell off a ship. Pete takes it and then tells Clara to get his brother Bud on the phone, and then we get a close-up of the message, which is from the Sunset Princess of Universal Cruise Lines, telling him the vessel was searched and his mother was presumed lost overboard. Pete looks a little stunned, possibly at the realization that he's now an orphan, and you won't find me making jokes about that, unlike just about everything else involving him this episode.
In the early morning light, Don is at the kitchen sink pouring out all the booze in the house. Megan appears in her nightgown and speculates that his current activity might be related to his absence the previous night. Don looks at her warily but confesses that it is, and after he has her come to him, he tells her, with some self-deprecating amusement, that he spent the night in jail. She doesn't see the humor, but he tells her he's laughing at how out of control he's been, and she at least appreciates the admission: "Sorry you had to find out that way." Don't feel too bad. He could have punched someone who knew how to punch back. With what sounds like a very clear head, he goes on that he realized something else -- he wants to move to LA. Megan, looking like she wants to give in to an unconditional smile, tells Don she's had a lot of opportunities in Hollywood, but she never considered them "because I thought it would make you go crazy. Wouldn't it? What would you do out there?" How about cause casting directors to elbow each other out of the way to get at him? Don doesn't mention that idea, though, instead telling her about the satellite office with windows and sunlight and the ocean. "It's an opportunity to build one desk into an agency. We'd be homesteaders." I suppose after the night he had, I can forgive him a little plagiarism. That's hardly going to be Stan's biggest problem with him anyway. Megan wonders about the kids, but Don thinks they'd welcome an entire summer in LA in lieu of weekend visits to the city, and with Megan out of objections for the moment, he breathes, "We were happy there. We could be happy again." It's what Megan needs to hear, and I think he's being sincere, but I still haven't forgotten my beloved Dr. Faye: "And I hope she knows you only like the beginnings of things!" This is no different; it's California that will reinvigorate the relationship, but like all his other infatuations, it won't last. Regardless, Megan starts crying, and after Don ascertains that that's a yes, they embrace...