Julia finds Scott and asks why he hasn't been returning her calls. He says he's been busy, and then she brings up the grudge. She asks if he's still angry about when she didn't choose him to direct her first play at Lincoln Center; instead she went for Mike Nichols, and the play launched her career. Julia asks him what she should have done, and Scott says she should have refused, because it almost ruined his career--it put him out of work for a year, and it took him fifteen years to work his way back to running this off-Broadway theater. Yep, he totally has a reason to be mad. Shut up, Julia.
Outside, Tom tells Derek he loved the way he talked to the actors. He marvels that Derek doesn't care what they think of him, and asks how he can sleep at night, knowing everybody hates him. Derek says respect is better than affection, and also that it's a lonely business. "You can't be friends with them," Derek says, and Tom dryly points out that he doesn't think Derek will really have a problem with that with Jimmy. Derek ruefully laughs that this 24-year-old shit is telling him how to do his job, and Tom says Jimmy reminds him of Derek when they were young: arrogant, stubborn, huge ideas that no one else believed in, and in the end he was right. Maybe Jimmy's the same, Tom suggests. He tells Derek to listen to him, that they're not enemies. Derek would rather fling himself naked into the East River.
Ana and Kyle talk about what a sleaze Derek is, and Kyle says he doesn't get why Karen hangs around him. (Other than that it's her job?) Ana asks who she should be hanging out with--Jimmy? Kyle protests that that's not what he meant, and Ana tells him, in not so many words, that everyone fixates on someone they can't have, but eventually you have to move on to someone you can have. Just then the blond lighting designer walks out and makes Meaningful Eye Contact with Kyle. Oh, good for Kyle. Get yours.
Derek makes another overture to Jimmy, telling him that he started out in theaters even worse than this one (and if I didn't know better, I'd swear they were in Under St. Marks, which is damp and cold and wretched). Derek says the crappy theaters made him do good work, because he had to be innovative, and now that he's used to nicer theaters, bigger sets, and more money, it might be possible that Jimmy has a point about Derek's creativity. Jimmy grudgingly thanks him, and Derek asks what Hit List is about if not scenery, props, or costumes. Jimmy says it's just two people falling in love, and the other people that get in the way of that. Derek and Jimmy are dressed almost identically in this scene, as if we didn't get Tom's earlier point.