Earl was bad his whole life. He never did good things. But after getting a 100,000 winning lotto ticket and losing it a second later being hit by a car, he realizes a message from Carson Daily. His cheating wife just divorced him and he has too much morphine to think. Carson Daily is on TRL and is asked how he has such a great life. He says if you do good things you are paid in return. A whole carma thing.
Earl thinks it over and realizes he's never done anything good before in his life. To get good things to happen to him, he realizes he has to make up for the bad things. He writes a list of 260 things. In the episode he makes up two. At this rate, they have a good 130 episodes of making his life better.
Shortly after starting to make things up, he finds his lost lotto ticket and claims his money. His brother meets a nice cleaning lady. He starts his second task, helping making a kid he used to pick on feel good. He decides to get him a girl.
However the guy turns out to be gay and to make things right, Earl has to give him back the confidence he originally stole. When he tries to give-up, his ex comes over and raids the place and demands the lotto money. He gets rid of her and finally helps the other guy.