We see at the start of the episode that Bernhard is a man on a mission, he is busy rallying people together for the purpose of creating a sign on the beach that can be seen by satellites or by passing planes. He tries to get Mr Eko and Charlie involved, but he discovers that they are busy building a church. He finds it hard to believe that everyone on the island is building something and that he is trying to get them saved.
Locke's faith in the bunker and the island is in question, he tries talking to Henry but to no avail, so he goes to take sollace on the beach as he can't get an answer out of Henry. On the beach he and Rose talk and his faith is restored when he talks to Rose and she tells him that she also knows what the island is capable of - refering to Lockes ability to walk and be pain free since getting stranded on the island.
In flashback mode we get to see and understand the situation between Rose and Bernhard, how they fell in love, how their interact and how they both look out for one another in their own way.
Jack asks Kate to go with him to see the others with regards to a prisoner exchange, as they approach a clearing Kate see and goes to pick up a doll, to the objection of Jack, they both end up in a trap, not one of the others but one of Danielles as it is not as sophisticated. They both try to shoot the rope holding the net in the air.
Bernhards management style is not working, he even gets Jin's back up leaving him to complete the sign by himself. Rose says so to Locke.
Rose admits to Bernhard that the ozzie healer was unable to heal her, but she believes that the island did instead, therefore that is why she is not overly committed to getting off of the island. Bernhard understands this and promises that he will stay on the island with her forever.
Jack and Kate find the clearing where they had their pow-wow with the bearded leader, they wait it out with Jack calling out that they are here to talk. Then at night, a stumbling figure of Michael comes through the undergrowth and collapses before them.