

Red's job hunt is going nowhere and he begins to wonder when he will find a job. With a year off to do whatever he wants, Eric makes a list of things to do, one of which includes graffiting a closed muffler shop as part of his new bad boy image. But unbeknownst to Eric, Red has found his new job... in the building Eric just graffitied! Kelso has issues with women; now that he's a father to a baby girl, he has a new respect for women that gets him nowhere. And Hyde is pressured by Jackie and Kitty to call his father.
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.