Kathy does not turn up for work and Kim and Frank discuss Chris's affair with Rachel - they think that it will fizzle out. Rachel confides in Sarah that she thinks Kathy knows about them. Eric lends Alan £500 to use at the races. He keeps making a note of all the money he is lending to Alan. Kathy tells Caroline and Nick about Chris and Rachel. They encourage her to leave him. Sarah takes Victoria to see the doctor. He gives her a clean bill of health. Kathy moves into the nursery flat with Caroline and Nick. The Windsors dog attacks Donna. Zoe attends to the Windsors dog and Luke rescues Donna, impressing Linda. Caroline gives Kathy advice and talks about her own divorce from Kathy's father. Eric pesters Betty for money from the ill fated rock concert. Rachel enlists help from Jessica to