

Hyde joins the disgruntled group of guys that can say "Kelso Slept With My Sister", much to his displeasure. Donna plugs a calender on the air for Red's muffler shop until she discovers it is full of scantily clad babes on hotrods. Kitty once again tries to teach Jackie how to bake, with disastrous results.
A week after Eric and Donna's engagement was called off, they are both on good terms, but have to make big decisions regarding their futures. Donna gets a new look, and Eric decides to take a year off, but to do that he needs to sell Donna's engagement ring to get some money. There's only one problem with his plan: Donna threw it off the water tower. Also, Bob is torn between Pam and Midge, and Red puts pressure on him (only because Kitty pressured Red) to choose between them. However, one of them takes the decision out of Bob's hands.