The episode begins by discussing the tremendous success of the last season, and the incredible popularity of the show. With that in mind, Tim Gunn, producers and former contestants interview people in New York, Los Angeles, Houston and Miami. The "biggest surprise" during these meetings was the return of season 1's Daniel Franco, the first person eliminated from the show. Daniel and 15 other finalists meet at Parsons School of Design. They talk with Heidi and Tim, who have a surprise for them. They are told that the dresses they made before they came to New York will be judged, and that two of them will be eliminated. After the runway, John, Heidi, Santino, Diana and Daniel Franco are called onto the runway to defend their work. After the judges' deliberation, Santino is declared the winner, and Diana and Daniel Franco are in. John is told that he did not spend enough time on his dress and Heidi is told that her dress is too simple, with too much trim. They are both out. The fourteen remaining designers are now ready to begin Project Runway's Season 2.