Back at Terra Nova, Maddy waits for Horton to leave the lab, then sneaks in, looking for her letter. She finds it -- reduced to scraps of burnt paper in the garbage. And then in comes Horton, who sets aside his cane and stops limping as soon as he's in. He grabs the garbage bag and takes it out -- narrowly missing Maddy, who squeezed under a table -- and heads back outside, limp returning. Maddy puts on her best Nancy Drew face as she stares at the scraps of burnt paper she managed to save.
Jim, Elisabeth and Josh are all out gardening in their back yard, with Jim and Elisabeth discussing the lowness of someone stealing medicine (Elisabeth has a patient with a rare neurological disorder who will die without it) until Josh throws a spaz and stomps inside, whining that what Terra Nova really needs is a way to communicate with 2149. Hey, remember when Elisabeth and Malcolm synthesized boatloads of that pheromone to save Terra Nova? Well, they don't, apparently, because why couldn't they do that with this or any other medicine?
Inside the house, Maddy has come to the conclusion that Horton is not the real Ken Horton but someone who stole Horton's identity to come to Terra Nova, and used a "facer" to provide a new face, because, oh why not a "facer." Then she gets a genius idea: she's got Horton's DNA on the envelope he sent her, so she just needs to get a new sample.
It doesn't take long; the next day -- after he fake-casually remembers that the colleague she was asking about was Dr. Grazier -- Horton leaves behind his coffee cup. Maddy grabs it and then uses the lab's DNA software to check it out. Malcolm comes in, concerned with what she's doing, but is super-eager to help out when he finds out it's because she thinks Horton's a fraud.
Over at Boylan's, Josh sneaks a vial of Azimeth from the package he's got for Boylan. Then he tells Boylan that his dad's asking a lot of questions. "The truth would be very bad for business," says Boylan, who then notices the skeet who tried to pawn the watch. Boylan tells Josh to go home and play the dutiful son, and no one will suspect him. Josh leaves. "Hey, Willy? How'd you like to work off that money you owe me?" Boylan calls, pulls out sonic pistol from under the bar.
Bad news for Maddy: the DNA is a match. "I was so sure. I'm sorry I wasted your time," she says, and Malcolm resigns himself to the "casual insolence" and being treated like research assistant. That last bit twigs with Maddy, who'd better act fast because Horton's skulking around in the shadows and has heard the whole thing, like this is some sort of medieval fairy tale of sorcerers and knights.