Previously: Hey, remember how Nancy got involved with Peter the DEA Agent, and Peter had a son, Tim? And also remember how Andy got his toes bitten off by a dog so now his foot is all deformed? And also remember how Celia had cancer and "the puppies [were] comin' off"? All three of those things are mentioned in the previouslies, and will thus be appearing in this episode, which I guess makes this Continuity Week here at Showtime.
So last week, Agent Wonder Bread's dead body surfaced in a ditch, and now Peter's ex-partner Agent Fundas is answering questions from his superior. Fundas keeps belching, because remember how that's his one character trait? Anyway, the Captain is a grumpy sort of person, though on this particular occasion he's got a reason. He produces a pair of dossiers from Internal Affairs on both Fundas and Peter which say that they were running a dirty, dirty operation. Angry Captain's solution is that Fundas will be taking an early retirement, Peter will be buried as a hero, and this whole thing will be swept under the rug. Which is pretty great news for Nancy!
Speaking of our favorite overwhelmed mother/dealer, Nancy observes Peter's funeral from a distance, making particular note of Peter's son, Tim, and his ex-wife, played by Brooke Smith who is just all over my TV this week. That's a good thing. Brooke's chewing gum all blasé while Peter's coffin is being lowered into the ground, so now I like the character almost as much as I like the actress. Nancy takes a call from Sullivan while she's there -- he's utterly clueless about what's going on in Nancy's life, he just wants to talk dirty to her. She's less than interested, though, and tells him straight up that he won't be getting any more until she's feeling "desperate" again. Desperate for what, she doesn't say, which is too bad because it seemed last week that she was only desperate to crawl on top of the grossest human being possible. Nancy resumes staring at Brooke and Tim, as Tim angrily tears up the American flag that those cops spent all that time folding. Nancy's clearly excited to find that someone's life may have been more severely fucked up by knowing Peter Scottson than hers.