Looks like Michael wasn't kidding when he told Jim that he'd done something so bad, it was even worse than murder (Jim's first guess).
What did he do? How about dash the dreams of 15 high school kids whom he'd foolishly, stupidly promised a college education 10 years ago.
Finally, Michael had to go admit his fault to the Scott's Tots - and did so with such shame and sadness that you almost felt bad for the poor sap.
If the storyline had any silver lining, it would be Erin's attempts to buck Michael up on the ride home. He impossibly good nature is a nice counterpoint to the cynics of Dunder-Mifflin, and even more significantly, she's cute. Sorry, we had to.
Back at Dunder Mifflin, Jim can't figure out that Dwight is out to sabotage him. An "anonymous," supposedly objective spreadsheet detailing objective criteria for employee of the month appears, and he doesn't seem to bat an eye.
Perhaps he's got too much on his mind with the baby and all.
Dwight's spy efforts are still falling flat, but Jim also isn't onto it to the extent that you'd think.
Ryan wants in on Jim's takedown now too, though. He found out about Dwight's non-subtle plan after finding a copy of it in the printer. The plot thickens.