This episode we find Danny struggling with romantic feelings he has just realized he has for Jordan. We find him taking the fatherly role, going along with Jordan to the doctor's office and worrying about her due date's conflict with the May upfronts. Matt, knowing Danny best, understands what is going on and urges Danny not to tell Jordan, but just to fully admit it to himself. The episode ends with Danny "manning up" and telling Jordan: that as a man divorced more than once who is a recovering cocaine addict, he might not make the ideal father -- but that that doesn't seem to be stopping him from coming after her. He tells her that she can run, but she better run fast, because he's after her.
Meanwhile, Matt (who's Jewish) is trying to spread Christmas cheer around the Studio, but when his actors join the writers to come up with ideas, they start coming up with the "truth" about Christmas: that Jesus couldn't have been born in December, how fast Santa would have to go to get to all the children of the world, etc. Highlights include: Cal breaking the writer's table with his coconut (brought in to produce snow) instead of the table breaking open the coconut, Matt and Cal's demented-eyed Nazi Santa, and the guys liking praising all the Christmasy ideas until they find out they're not Lucy's pitches.
As for the Matt-Harriet interactions, we see Harriet getting a new role in a movie, which Matt tells her she would be perfect for, but he ruins the moment when he tells her the director/producer offered it to Harry because he wants to date her. To distract her from this other guy, Matt gives Harriet a Christmas kiss, leaving her stumbling over her introduction in the news section of the show, calling herself "Matt."