Sure enough, when we return, we see that Peggy and the guy have retired to his place, ginormous even by TV standards for a dorm room, and they're making out horizontally on the couch. Peggy takes a moment to inhale and then ask if he has a "Trojan," so apparently Peggy finally engaging in confession at the end of last season was no reason to think she'd turn back into a good Catholic girl. Anyway, the guy despondently says no, sensing this could mean the end of his heretofore-very-lucky evening, but although she understandably draws the line at anything that could get her pregnant again, she offers, "There are other things we could do." Make your own joke about tools and toolboxes here.
Betty's awakened by the sounds of distant sirens and some louder noises from downstairs, and she gets Don up; cut to the two of them stumbling into the kitchen and, bleary-eyed and bewildered, finding Gene emptying some liquor bottles out into the sink. He tells them that the heat is on, and they have to get rid of the stuff, and in response, Betty wordlessly (and kind of hilariously) exits, either to fall back into bed or to vomit. Don, for his part, purses his lips all, "When I made my grand speech earlier about taking you into my home, I was thinking I'd have lots of booze around for when you went off the rails." Oh, the best-laid plans.
Peggy manages to extricate herself from the guy's foldout bed without anyone losing an arm, but he wakes up before she can make a clean getaway. She tells him she has to work the next day, and when he asks if she'd like to get breakfast, points out that it's the middle of the night. That's the best (and only) time to go to Denny's, girl! Again angling to see her again, he asks where she works, but she again vagues, "Madison Avenue." Sensing that that's a bit large an area to count on a chance meeting, he tells her he hangs out at the bar at which they met a lot, but her fake nod in response suggests she won't be looking for him again. Guy, she'd probably reconsider if you promise never to ask her her name. Anyway, before she goes, she at least tells him it was fun, and seems to mean it, but the Ann-Margret impression is over. THANK GOD.