James and Kathy go for a walk. Henry lets Norah know that he's having second thoughts about the liquor license for the shop. She's disappointed. Amos visits Annie as she's cleaning up at Hawthorn Cottage. He offers to let James stay at one of the rooms in The Woolpack if Annie's inconvenienced whilst he waits for his furniture. Annie finds a bracelet on the floor. The village begins to gossip about James and Kathy being seen around together. Sam fills James in on anecdotes from the village's past. James suggests to Annie he should write them down. Jim notes that a child has broken a window at Crossthwaite's Cottage. Amos frets when Norah and Jim comment that it wouldn't be right for James to stay at a pub. Joe is still having problems with his twisted ankle and Annie tends to it. She lets