Jim and Katy sit at a table, across from Pam and Roy, as Katy observes that they're at the cool table. She is apparently unaware that saying it makes it immediately not true. But Roy laughs. It turns out that his high school and Katy's were in the same athletic conference, and Katy goes into a cheer from her high-school days. Yes, she's an ex-cheerleader. There's always that danger when you date a hot girl, you know. Mine, I hasten to assure you, was in danceline. Jim looks across at Pam with a helpless shrug like, "What are you going to do?" "Mock you mercilessly without saying a word," appears to be Pam's answer.
Elsewhere, Brenda Something asks when Michael is going to start his presentation. Michael heads over to his group to try and ad-lib about life preservers, but Captain Jack puts an end to that with a limbo announcement. He asks who wants to hold his stick, which somehow fails to elicit a "that's what she said" from an off-his-game Michael. Dwight pushes Meredith aside to try to win that honor, so Captain Jack decides to get rid of Dwight by offering to let him steer the ship.
From behind a ship's wheel on the foredeck, Dwight brags about the time he got to help fly a plane when he was four. That's great, Dwight, but try doing that post-9/11. Or, indeed, getting on a plane at all. Or within half a mile of an airport.
Down below, limbo time is over, and it's time for the dance contest. Michael wants to do his presentation first, but Captain Jack kiboshes that. Michael tries to make the best of it by taking over the dance floor and babbling about dance as a concept, as if he's saying anything about anything. Not that his words are any more embarrassing than his movements, which appear to have been choreographed by a blind epileptic. Everyone looks on in varying degrees of horror, particularly the Dunder Mifflin contingent. "Sometimes you just have to be the boss of dancing," he panting-heads afterward.
Dwight sings a sea chantey at the helm, as the camera pans up to the boat's real pilot, above and behind him on the nice, warm, enclosed bridge. He doesn't appear aware of Dwight's existence. Angela comes to ask Dwight back in. "Do you want us to run aground, woman?" Dwight asks. Angela goes back inside without bothering to respond.
It's now the snorkel-shot stage of the party. Pam tries to pull Roy away, but Roy would rather watch Darryl drink. So Pam goes out on the deck with Jim instead. She says she doesn't understand Roy sometimes. Only sometimes? There's a long pause while Jim tries to think of a response, until Pam asks what it's like dating a cheerleader. Jim doesn't have an answer for that either. His face gets serious, like he's about to say something. But before he can, Pam gets cold and decides to heads back inside. Jim thinks, "Not as cold as my feet."