On Induction Day there are some new faces. Sarah-Jane's little sister goes rampant, a new house system is introduced, and there's trouble brewing in the canteen.
When a policeman comes to school to talk about drugs, Anna hides the LSD tabs. Looking for Gordon, the loan shark smashes up the flat. Anna heads out onto the streets alone.
Paula makes a fool of herself trying to impress Jerome. Dennis adopts the Beatnik look for a trip to an art museum, but when he sees that Rachel needs to sit down, he grabs a nearby chair and destroys the exhibit from which it is a part!
Julie camps out in the playing fields. Arnie and Dill find someone living in the Boiler Room. Kevin unwittingly takes one of Anna's LSD tabs. Later, he starts to be affected, runs out of class and climbs over the balcony...
Becky's involvement with the women's refuge threatens her relationship with Jacko. Arnie and Dill eavesdrop on Gordon on his mother and discover disturbing news about Anna.
The school holds a fund raising day. Arnie and Sam hatch a plan to kidnap Mr. Parrott (but all for a good cause!) while Jessica settles her differences with Paula in the girls' rugby match.
Gordon hits Becky as she tries to rescue Anna, but he's caught by the police. Demolition equipment sets to work on the road protesters' house, while inside Julie and her friends are handcuffed together.
Lucy's mother dies of an HIV related disease. Her father works out the disease was contracted during a transfusion while abroad. At school, sympathy turns into vicious rumour.
There's a lot of ignorance demonstrated when people learn that Lucy's mother had HIV. A visit to the Terrence Higgins Trust helps clear up her thoughts.
At half term, Jacko and Brian leave a raunchy video in a coach they are cleaning, and when the coach unexpectedly departs, courier-biker Jacko tries to intercept it before the Women's Institute press "play" on the remote control.
The school works on a promo video and Rick persuades a shop to give him a bicycle in return for "product placement" in the video. Jacko tells Becky he doesn't have the money to go on holiday with her.