In the Forman basement, in the circle, Eric can't believe that Hyde got arrested for possession, as he'd always thought that when Hyde got arrested, it would be for something cool like robbery or pimping. Kelso wonders if Hyde is anyone's 'prison girlfriend' yet, and Fez points out that he's been in jail for three hours, so of course he is. The camera pans to Hyde's empty seat, then back to Eric, who has been drawing on an Etch-A-Sketch; he shows the picture that he's drawn of Hyde in jail as someone's girlfriend. Kelso laughs and pretends to be the cellmate, asking Hyde if he wants to perform the unspeakable act, or have it performed on him? Fez sighs and tells them that they've done a horrible thing... to a children's toy. The camera pans to Hyde's seat; he's just sitting down, and takes the Etch-A-Sketch, looks at the picture and comments that they probably thought that he'd never see it. Eric grabs it and erases the picture while nervously apologizing; Kelso makes excuses for what he said, and Fez asks when they get to meet his new boyfriend?
[Scene change: Hyde looks down on the camera.]
In the Forman kitchen, Kitty wants to talk to Red about Hyde, but he doesn't want to discuss it; he points out that they've treated Hyde like he was their own son. Eric, who has just walked into the kitchen, mutters that they've treated Hyde ~better~ than their own son. Red wants to let Hyde rot in jail, but Eric informs him that Hyde's already out; he got probation. Red is upset, and angrily informs Eric that in Russia, for a first offence, a person gets 5 years in Siberia; for a second offence, they get 10 years in Siberia and there are no third offences. Kitty comments that that's unless the criminal likes making snow angels, and laughs. Red tells her that he's putting a stop to things before they get out of control; she asks how they would get out of control and he imagines... a black and white film, entitled "The Dope Fiends"; Hyde, wearing a '30s-style suit, is in the driveway. Eric comes out of the house, carrying flowers and says that he's going to visit his best girl, Donna, and they're going to share a soda. Hyde tells him that he has something keener than a soda... marijuana. Innocent Eric has never heard of this, but is willing to try it. The picture cuts to the Forman living room, where Jackie is dancing wildly, Eric is looking blissed-out, and Kelso is sitting in a chair, laughing uncontrollably; Hyde stands by and looks pleased with what he's done. Fez comes in with a large brown paper bag; the new shipment from wherever it is that he's from. Donna comes in and asks Eric where he's been, as he missed choir practice; he tells her that after one puff of marijuana, he's now incurably insane. The camera takes various close-up shots of Eric's face, sweating profusely; Donna tells him that she won't let this happen and grabs the bag from him. Hyde pulls out a gun; he and Eric wrestle over it, and Donna gets shot. She falls to the ground and dies. Red comes in and as the Narrator says that this could happen in YOUR home, or YOURS.... or YOURS (pointing directly at the camera.)... Kitty tells Red that she really doesn't think that will happen; Red asks Eric if Hyde has ever pressured him to try it, and Eric says that he's honestly never felt pressured.
At The Hub, Jackie comes in and puts her hands over Hyde's eyes, and asks "Guess who?" then tells him that he's her hero, and that his going to jail for her is the most romantic thing ever. Leo comes in and tells Hyde that he better have a good reason for missing his shift at the Foto Hut; Hyde tells Leo that he got busted for possession, and Leo admits that this is a good reason, then tells Hyde to join the club. He then clarifies that they have an actual club, and they're saving for a field trip to Amsterdam.
In the Forman driveway, Bob sees Red taking out the trash and comments that it's better late than never; Red asks what that's supposed to mean, and Bob explains that he heard about Hyde being arrested. Midge is shocked that there was marijuana in their own neighborhood, and when Bob and Red both nod knowingly, she adds that she's upset about all the times she and Bob had to drive across town. Bob tells her to be quiet.
In the Forman kitchen, Kitty wants to discuss rational solutions as a family so that the 'incident' doesn't happen again. Laurie tells Red that she's not comfortable with a criminal living in the house, and suggests that he kick Hyde out. Kitty says that there's no way they're doing that, but Red says that that's exactly what they're doing. Laurie claps; Hyde says that if Red feels he's not good enough to live there, that's fine, and he'll leave. Eric tells Red that it's not fair of him to kick Hyde out, but Red points out that the whole thing is Hyde's own fault. As Hyde heads downstairs to get his things, Eric blows up at Red, but all he can manage to get out is that he's very angry at Red.
[Scene change: Eric and Hyde jump in the air.]
In the Forman basement, Hyde is packing his things; Eric tells the gang that it sucks that Red is kicking him out. Hyde says that he'll stay at the Foto Hut, and sleep on the floor there. Eric won't let it go, and says that it's not fair for Hyde to be punished for something that they all do; Kelso comments that he doesn't want to be dragged into things. Eric decides that he's going to tell Red the truth; the gang says no, but Eric is sure that it will work out because Red can't kick Eric out, and he'll be a hypocrite if he still kicks Hyde out. Hyde points out to Eric that his getting into trouble won't get Hyde out of trouble.
[Scene change: Hyde jumps towards the camera.]
In the Forman living room, Kitty brings Leo a cup of tea and leaves him to talk with Red about Hyde. Leo tells Red that he shouldn't kick Hyde out as he's a good kid; Red counters with the fact that Hyde's a doper, and Leo admits that he himself has done it once or twice, shocking as that might be... as he's such an upstanding businessman and all. Red sarcastically says that he's shocked, then agrees with Leo to make him stop talking. Leo is glad that Red has finally agreed to let Hyde stay and lies down on the couch and tells Red to leave his house.
On the Forman front porch, Jackie and Donna are sitting and talking, Jackie is doodling in a notebook; Donna grabs it to see what she's writing and sees variations on "Mrs. Steven Hyde" all over the page. Jackie informs Donna that she and Hyde are in love, and when Donna doesn't believe her, proves it by saying that it was her bag of marijuana that Hyde went to jail for. Donna is shocked and immediately tells Jackie that she has to tell Red and Kitty the truth because they're kicking Hyde out, but Jackie just thinks this is even more romantic; Hyde will be homeless for her, and he'll have to come to her for comfort and when she buys him things, he'll love her. Donna says that if Jackie won't tell Red, she will.
[Scene change: Donna jumps in the air, Jackie dances.]
In the Forman kitchen, Donna has just finished telling Red and Kitty what really happened; Kitty tells Red that he was wrong, and both of them thank Donna for telling them the truth. Hyde comes up from the basement with his things, and drops off his key on the table, but Red tells him that he can stay. Hyde simply says "Cool," picks up his key, and heads back downstairs. Kitty stops him, and asks if Red doesn't have anything else to say to him? Red says yes, and starts with "Dumb ass!" then continues on... we see a montage of scenes, close ups of Hyde's face, Red with his jacket off, Kitty cleaning the counters, Red with his tie undone, Hyde looking bored... Red finally winds the whole thing up by telling Hyde that if he ever does anything like this again, he'll kick his ass so hard that his nose will bleed; Kitty adds, "And we love you!" Red announces that everything is back to the way it was before. Just then, Eric bursts into the kitchen and announces that he has something to say; Donna tries to stop him, but he doesn't listen to her and tells Red that he does it too, so Red can't kick Hyde out. Kitty, looking extremely nervous, tells Eric that they'd already decided not to do that. Red wants details from Eric and asks, "Since when?" Eric looks at Hyde and they both remember... in the Forman basement, in the circle, Hyde, Kelso and Eric are about 13 years old or so, and Hyde is lighting up the incense to hide the smell... Eric announces that he's baked; Kelso says that until now, he's been spending all his time on school work, but this will change things; Hyde tells them to thank his mom, because if she hadn't passed out, he wouldn't have been able to raid her stash. Eric tells the guys that he thinks he touched Donna's boob, and it was all squishy; Kelso tells them that he had a dream about his Spanish teacher, and when he woke up, he was stuck to the bed. Hyde tells him that that's dangerous, then asks if Kelso's Spanish teacher isn't a man? Eric declares this the best time ever, then they hear Red call from upstairs......Red is saying Eric's name, and asks if he's on it now when Eric finally focuses on him. He asks again how long Eric has been doing this, and Eric takes one look at Hyde then says just since last week. Donna, who is still sitting at the table, pretends to hear her parents calling her and runs out the door. Kitty asks what they were thinking, and both Hyde and Eric fumble around, then finally hit on "We weren't thinking!", as well as blaming society, the times, and at Kitty's suggestion, peer pressure. Red tells them that he knows he's the one at fault; he hasn't been strict enough, and from now on, he's going to crack down hard on them... fun-time is over! Eric wonders where he's been, that he's missed fun-time.
[Scene change: Donna and Eric dance on the screen.]
In the Forman basement, Donna says that because Eric told Red, he's now the King of Stupid; Kelso is upset and wants his title back, so points out that he once shot himself with a BB gun, and Donna gives him the title back. Donna tells Eric that he never should have told Red, and Eric admits that doing so was a terrible mistake. Jackie points out that they're missing the important part: that she and Hyde are in love. Hyde tells her that he doesn't love her, he doesn't like her, and he doesn't even like to look at her. Red bursts in through the back door and sniffs around for smoke, then starts to install a smoke detector on the wall; Kelso asks if it will detect ~any~ kind of smoke, and Donna tells him that he's still the King.
[End credits: In the Forman basement, young Hyde, young Eric and young Kelso are in the circle. Eric holds up a pack of birth control pills and tells the guys that he found mints in Laurie's room. He gives one to Kelso who puts it in his mouth and says it's not very minty. Hyde tells him that it's a birth control pill and calls him a head-gear-wearing moron. Kelso announces that he's going to be handsome when he grows up, and he knows this because his mom told him so. Eric calls him the King.]