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In an episode inspired by Charles Dickens' A Christmas Carol. The ghost of the founder of Omega House, Jake Marley, visits James and attempts to convince him not to marry Ophelia.
Larry is torn between his lust for his film muse Sophie and his affection for his film buddy Ciara while James and Ophelia begin to reconnect; Emmanuelle helps Karen and Cooper connect while she finds a new partner.
It's a new school year and the gang's not all here. Dean Loward is determined to rid the campus of Omega House and his plan includes demolition. James attempts an intervention with the demo man by reviewing the events of the previous school year.
One returnee is Karen who protests the destruction of he campus home. She returns along with her soon to be divorced father and stepmother. Daddy suggests that Karen and her friends live this year in his vacation home. Karen agrees and thus, Omega house moves to a luxury dwelling where James continues reliving memories of the previous year.