Previously: Everyone hates Kate.
Night, the Stylista loft. Dyshaun talks about the stress of being in the bottom two. Natch, he takes the opportunity to shit-talk Kate some more. He TH's that she doesn't fit the ELLE girl mold. As proof, we see her reading a magazine. ELLE girls don't read magazines! Kate theorizes that their criticisms reveal that they perceive her as a threat. She vows to William to separate herself from the group. He TH's that she's "tragic," not very bright, and not cut out to be an editor at any magazine, least of all the great and mighty ELLE. He asks if her anti-group mentality might backfire, but she says she's a leader and will win. At this, William literally laughs in her face.
The next morning, the peons head straight to Anne's office. Anne tells them their next task is to please her demanding niece Erin, who might as well be the cross-eyed, pig-tailed misfit from One Crazy Summer. But preppier. Erin emits a stone-cold, lobotomized gaze as Anne tells the minions about Erin's super-stylish tenth birthday party at FAO Schwarz tomorrow.
For their assistant task, the underlings will present Erin with a party theme, including decorations, party favors, cake, and entertainers. And I know that it is not right to mock a child, least of all a young girl, but egads!, this one is homely. Anne tells the minions they will have $50 for supplies. Johanna reveals she doesn't like kids. Anne concludes that the minion behind Erin's favorite theme will win the task and, as always, get to pick the teams for the editorial challenge.
Erin channels one of the Gap girls when she says, "I want my party to be faaaabulous. I want it at FAO Schwarz. So don't embarrass me." She is a pre-plastic surgerized, bobble-headed bitch in the making. Just wait six years. Dyshaun reveals that he wasn't always the fantastically flaming fashion freak he is now. In fact, when he was Erin's age, he basically sat around eating M&Ms and watching TV. And I've unlocked the key to Dyshaun -- he was a fat kid! That's why he's such a bitch now.
Anne wishes them good luck, and off they go. Eternity Cologne gets on the horn, telling a prospective entertainer that the audience will be, and I quote, "very wealthy... I guess, I mean, in a way, spoiled children." Don't go into PR, honey. She says she wanted to do an Eloise theme. Johanna capitalizes on Erin's sophistication with a more adult party theme. Kate predictably chooses a fairy tale princess theme... which somehow involves Scottish history and culture?