The network wants Jon Stewart to be the permanent guest host, but Arthur knows they want him to take over for Larry. Larry thinks David Duchovny has a crush on him. Hank gets ripped off by Elvis Costello.
A copy of the show's budget, including employee salaries, gets passed around the office, and everyone is upset. Larry is supposed to try to get Ellen Degeneres to come out on his show, but he isn't entirely sure that she is gay.
Phil has trouble accepting the new female writer. Kevin Nealon starts hanging around the office so much that Hank worries he is going to steal his job.
Larry has trouble firing a staff member that is consistently messing up. Hank does something nice for his assistant and it results in a rumor that he might be gay.
Larry is desperate to make People Magazine's Sexiest Men Alive list, and it causes problems with Ben Stiller, his friend and guest on the show. Customs busts Hank for importing Cuban cigars.
Angie Dickinson is appearing on the show. This is a problem for Arthur because of their past and his inability to control himself around her. Hank attempts to get a part in Disney's Hercules.
Larry thinks that Lori Loughlin stole money out of his wallet. Hank falls for a single mom and books her son on the show. Phil hatches a scheme to meet models and attractive actresses.
Beverly has a secret admirer. Larry decides to write a revealing book about his life and career, but regrets it when he sees who he is on paper. Hank worries that the book will include an embarrassing incident.
Phil's writing suffers when he gets a new girlfriend, but thrives whenever she hurts him. Paula is offered another job, so Larry promotes her in order to keep her around. Unhappy with this, Arthur walks off the show.