Ronnie wants to be in the end-of-year musical, but she is a terrible singer. Can Jez tell her the truth, or is it too hard as it looks like she's running away already? Meanwhile, Lauren may have multiple sclerosis, Claudine has finally found happiness in her life with Danny and Danny reveals that he loves both Lauren and Claudine.
Claudine is in love with Danny and hatches a plot to break him and Lauren up. Meanwhile, Lola thinks she has seen a ghost and Jez and Ronnie play a prank with Ronnie dressed up as the ghost. Claudine and the rest of the gang are also involved and Lauren and Danny confront Claudine about her plans. Claudine is upset and storms off, after insulting both BB and Lola. Danny follows, aware that she is upset. Claudine confides in him everything in her life, before admitting her love. Danny kisses her, unaware that Lauren can see them both.
A new set of students start at the school and Lauren finds it difficult to make the required grade. She finds life even harder when her classmates find out that she didn't even have to audition to get a place at the school. Danny attempts to help Lauren but she begins to wonder if all the hassle is really worth it.