Previously: Susie had a plan to get the Life Shield, and sent Rachel into the Inferno against Jenn. Jenn pulled off an upset victory, and I do mean "upset," as Rachel had a hiccupy-sobbing meltdown and ran away without even saying goodbye.
Post-Inferno. It's smash-cut-tastic drunken-montage fun times courtesy of Ace's toxic orange punch. And Ace's blurry ass, which is a centimeter of crack away from getting an agent and a walk-on in Entourage. Danny voices over disparagingly about the "drunken idiots in the house" -- over footage of himself, floating in the pool with one of his bafrillion douchey fitted caps on, carefully protecting his beer from chlorine contamination. Shut up, Danny.
Fast-forward to 3 AM and Ace, Johnny Bananas, and Danny deciding to "fuck with" the girls. Ace is singing Air Supply to Susie, apparently (we don't really hear that, more's the pity), and shaking her bed, and she's like, "Get out. ... Seriously, get out! ... FUCKING GET OUT!" but he won't, so she hits him in the face. She doesn't seem that fussed about it in the interview -- she needed to smack him, she smacked him, he left, done -- but the next morning (or later, it's hard to say), Cara and (especially) Colie get all screamy about bad touching and privacy, and Bananas is like, "Whatever, don't go on this show if you don't want to get harassed by asshats." This is both an excellent point and completely beside the point at the same time. Well done, Bananfucius. Ace is put out that Susie cuffed him; Timmy tries to broker a peace between them, to not much avail.
The commercial break includes a Real World promo in which Colie makes out with every dude in Colorado. What're you trying to say, MTV?
Challenge time! It's another needlessly complex task involving starting a fire, which will then burn through a rope, which will dump the opposing team into the water from a platform, but to start the fire, the teams have to collect their supplies from another platform which is also in the water, while the team members on the platform try to dump water on them to soak the supplies. The Challenge itself is rather dull to watch, but it sets in motion our two "story" "arcs" -- The Redemption Of Ace (described by both others and himself throughout the episode as, well, something of a disappointment performance-wise), and The Continuing Suckage Of Danny (explicitly referred to by Kenny, who's like, "We listened to you on the battering-ram thing, and we lost, so simmer").