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This episode of Gossip Girl begins where the last one, "Summer, Kind of Wonderful," left off - at the beach, with Dan and Serena. Only it's the morning after, and they've just spent possibly the most passionate night of all time.

Or so we can imagine, based on Serena wearing only Dan's jacket.

These two are totally back together, right? Well, sort of.

Serena wants to take time to think about it for awhile first. But at the same time she can not get Dan out of her thoughts - and certainly vice versa.

On the bus ride back to N.Y. City from the Hamptons, the two of them keep staring at one another until they feel they have absolutely no choice but to get it on right there in the bus bathroom. Awesome scene.

For whatever reason, Vanessa has turned Rufus' art gallery space into a cafe or coffee shop of some sort while he was away during the summer. We're sort of confused as to where this story line is going but the two of them seem surprisingly close. He confides in her that he misses his kids, and thanks her for the hard work she's put into the new cafe. Expect this development to be a bigger factor in later episodes.

With the summer almost over, Nate plans to return to the city. But he gets some bad news from his mom - the feds are seizing the family's possessions because his dad is on the run from the law. Seizing an opportunity to help his friend - and help his own cause with Blair - Chuck arranges to sell his shares in the Victrola to help the Archibalds out of financial trouble.

Nate is far from pleased, but we soon see this issue is far from over.

Speaking of Nate, his relationship with married Catherine soon takes on an unexpected, sexy twist. While confiding in her about his family problems, she agrees to bail out Nate's mom instead ... so long as Nate keeps giving her some teenage loving, of course. Nathaniel had wanted to cut off their affair but is now roped back into it.

And in another interesting development, it turns out Catherine is actually the stepmother of Marcus, Blair's British boyfriend. Chuck learns this when he befriends Marcus over a game of squash and the Lord confides that the Duchess never seems happy with the girls he brings home. Chuck pretends to be sympathetic as he schemes to ruin Blair and keep her for himself!

Desperate to impress her royal beau and his stepmother, Blair decides to put together a big high society party in New York. That is where Chuck arrives with Catherine as his date and blows the lid off of the joint.

When she's introduced to Duchess Beaton, Blair is told that a lowly Waldorf will never be good enough for her Marcus.

Just as Chuck Bass' scheme seems to have worked, Blair happens upon what will allow her to turn the tables - Nate blatantly in the act of giving it to Catherine at the hotel where the party is. Oh my effing god, indeed.

Blair wastes no time blackmailing Catherine, threatening to expose their little tryst. In exchange for her silence, Blair wants the Duchess' approval of her dating Marcus. Begrudgingly, Catherine offers Marcus her blessing to continue seeing Blair - as Queen B glares at her victoriously. Another awesome scene.

Foiled again, Chuck can't help but admire being out-foxed by Blair - but still vows to win her affections once and for all.

Much more to come! For now, discuss in our Gossip Girl forum!

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Gossip Girl Season 2 Episode 2 Quotes

Serena: I'm just a little ...
Dan: Overwhelmed?
Serena: Confused.

Gossip Girl: As summer comes to an end, I'd like to share a few things I've learned about fun in the sun. Gossip Girl's guide to summer fun tip #1: Don't fall asleep on the job. The best hookups are free of morning breath and awkward conversation. The only thing better than making up ... is waking up.