Condom machines have been installed in the school washrooms, and as Lucy records reactions with her video camera, Dwayne finds an interesting new use for the condoms -as water bombs to drop on Joey, Wheels and Snake. Joey, however, is more concerned with raising money to put a down payment on a muscle car, and takes bets that he will walk through the cafeteria - wearing nothing but a hat. B.L.T. has trouble breaking up with Michelle. Dwayne receives a frightening phone call from his summer girlfriend. To be continued...

Joey and Dwayne's enmity has escalated since Joey found out that it was Dwayne who turned him in for walking naked in the cafeteria, and Joey is determined to get Dwayne back. AIDS speakers at Degrassi during Sexual Awareness Week make the illness chillingly personal - especially for Dwayne, who becomes increasingly withdrawn as he awaits the results of his HIV test. Michelle finds out the real reason B.L.T. broke up with her.

Michelle, B.L.T., Simon and Alexa were always the fabulous four, but now that Michelle and B.L.T. have broken up and B.L.T. has a new girlfriend, Cindy, Alexa's loyalties are divided. Snake develops a crush on Michelle, but she's just not ready for it. Caitlin, planning a fancy dinner for her parent's twentieth anniversary, discovers her father is seeing another woman.

Wheels' lies to his grandmother become more elaborate as each tops the one before, and when he's grounded for his marks, Wheels concocts another story so he can go to a concert with Joey and Snake. Caitlin becomes increasingly upset about her father's infidelity, but discovers that her mother already knows about it. Yankou doesn't know what to do about his crush on Tessa.

Lucy, who's feeling unpopular, is thrilled when good-looking Dale invites her to the dance. The girl's volleyball team, however, is upset that the boys' basketball team is getting preferential treatment. Lucy is all set to fight, until she discovers that Dale is the captain of the boys' team. When Patrick, who has broken up with Spike, invites Liz out, Spike is surprised to find that she's jealous. Alexa tries to make up with Michelle.

When Tim tries to kiss Liz good night after a date, it reawakens her long-ago memories of sexual abuse, but it's just not something she can talk about, not even to her best friend Spike. Yankou thinks he wants to kiss Tessa, but he's not sure whether she wants him to. Joey feels pressured with Wheels living in his house. Dwayne's friends can't understand what's bothering him - and Joey's the only one who knows.

Melanie's surprise sleepover for Diana's birthday promises to hold more than one surprise when Kathleen finds some marijuana. Hoping to bring his two best friends together, Yick persuades Luke to invite Arthur to a poker game. Joey decides to join ""the nerds"" for poker - anything to get away from Wheels, who's driving him crazy. Yankou must pull an all-nighter in order to get an assignment done on time.

Wheels wears out his welcome at Joey's house when he steals money from Mrs. Jeremiah. But his Grandma won't have him back, his reputation has preceded him to Snake's house. It's pouring rain. Where will he sleep? Michelle, worn down by job, school and partying roommates considers moving back to her father's house. But will she be able to stand his rules?

Auditions are being held for Talent Night, and the acts range from dramatic poetry to singing hats. Joey is struggling with science - it's clear he's going to need some help. Alexa is thinking of breaking up with Simon. But the whole school is thrown into turmoil when a student commits suicide at school - especially Caitlin, since the student is her ex-boyfriend, Claude. To be continued...

Life begins to go on at Degrassi, but should they go through with Talent Night? Snake is beginning to feel better after his discovery of Claude's body. Joey still desperately needs help with science, and Mr. Webster has set him up with a tutor - Caitlin. Joey's apprehensive enough, what with his history with her, but when he gets to her house, he finds that she's still suffering the effects of Claude's suicide.

Snake invites Spike to the graduation formal, but then Michelle - who he'd really rather go with - invites him. What's a guy to do? Tessa is becoming bored with Yankou, and wants to dump him, but she doesn't want to hurt his feelings. What's a girl to do? Amy and Alison are desperate for dates to the formal, but only a senior will do.

Dwayne must deal with his feelings about being HIV-positive and with the reactions of other students once his secret gets out. Lucy is keen to follow the footsteps of boyfriend Bronco into the school presidency. Joey contemplates asking Caitlin to the semi-formal. Suddenly the year's last dance takes on new significance when the news comes out. It's not just the year's last dance. It's Degrassi's last dance.