Carmen interviews that they were flipping out. It's the most honest reaction coming from the designers -- I'm really loving it. Chris March has to wipe away tears, because SJP is the reason he moved to New York. I gotta get some backstory on Chris. Where was he designing those wacky costumes before?

SJP tells them that their challenge is to create a two-piece look for her clothing line, Bitten. She asks them if they agree to do the challenge, which I think is sort of sweet. The look needs to fit into their fall/winter line, and the goal of Bitten is to provide high-end American sportswear at affordable prices. At Bitten, they believe that fashion shouldn't be a luxury, and quality shouldn't be a privilege. I guess that quality shouldn't be a privilege, but why shouldn't fashion be a luxury? I'm not trying to be facetious, and I'm sure there's an answer that could be convincing, but in the meantime, I'm thinking that with all of the problems in the world, fashion is most definitely a luxury. I'm not even saying I don't care a lot about fashion -- I'm just saying it is actually kind of a luxury.

Tim tells the designers that the challenge is about affordability -- the entire two-piece look has to retail for under $40. Carmen poops herself when she hears this, and for good reason. Tim reminds them (and us) that there's a big difference between the price of raw materials and retail price. Sooo, their budget for the challenge is $15. Hmmm. I'm sure the poor little kids in Ecuador that are probs sewing this crap for pennies a day have nothing to do with the affordability. …Okay, I don't actually know where Bitten is manufactured, but shades of Kathie Lee Gifford -- don't you think of this stuff when you hear about "affordable" celebrity-fronted clothing lines? I want someone to convince me that there's no sweatshop action happening here.

The designers are freaked by the $15 budget. Chris is crying, for a different reason now. He interviews that they are going to have to use toilet paper and Scotch tape. This segment of Project Runway was brought to you by 3M. And the tourism department of Ecuador. The designers will have 30 minutes to create a design concept for the challenge, at which point they will present their concepts to SJP. She will choose seven designs to move forward, and the designers will work in teams of two. Yay, teams!! Sweet P is worried about the team aspect. She interviews that she likes working in teams, but she wants it to be a good team. Well, you're lucky that you are at least 50 percent responsible for the quality of the team.