Angelus toys with the gang, starting with Wesley, as they try to get him to talk about the Beast. Everyone gets really upset with each other over the things Angelus says. Wesley ends up kissing Fred and Gunn walks in. Wesley and Gunn fight until Gunn accidentally punches Fred in the frenzy and knocks her to the floor.
It doesn't look like Angelus is going to crack until Cordelia offers to let him have his way with her if he tells them all he knows. Angelus says he met the Beast in 1789 while in Prussia. The Beast wanted him to kill three Svear priestesses who were going to banish him. Angelus refused and the Beast was going to kill him until the priestesses intervened.
When the gang goes to the house where at least one of the priestesses live, they find her and her entire family slaughtered. However, Wesley does find the spell they were working on to banish the Beast. They go back to the hotel and Cordelia refuses to give up her body to Angelus because they didn't save the world. She says that was part of the deal.
The gang decides it's time to restore Angel's soul, but when they open up the safe where it was kept, nothing is there.