Todd Packer returned this week, anxious to settle into the office as a salesman. Because Michael recommended him so passionately, Holly hired him right away. This upset the rest of the crew because, seriously, the guy is a jerk.
It didn't take long for Holly to come to this same conclusion, which she shared with Michael. Still, he was blinded by his long-term friendship with Packer and got angry when Jim and Dwight plotted to send him to Florida, under the guise that Jo wanted him to work at corporate.
When Packer talked to Michael about this, Michael was about to tell him the truth... until Packer went off on Holly, calling her uptight and sounding like an ass. This prompted Michael to go along with the tale and we all watched Packer drive away, thinking he has a job down south.
In the B storyline, Andy was upset because Pam used her position as office manager to get Erin a computer. He wanted one, as well, but Pam made it clear he had to break his in order to get it, or else others in his department would make the same request. These two teamed up to break Andy's old computer and scuff up a new one so it didn't look like he was receiving special treatment.