Jerry and Elaine are watching TV late at night and stumble across "naked people" and that gets them both discussing whether they could have a relationship and not jeopardize their friendship. George says it can't be done, but Jerry and Elaine devise "a system"; however, it develops a little trouble when her birthday comes along.

George's relationship with a former IRS worker eases Jerry's tax worries--until she becomes George's former relationship; Kramer sees too much of Elaine while seeing her roommate.

George changes his life by going against his instincts; Kramer plugs his book on "Live with Regis and Kathie Lee."