As the World Turns - DAILY UPDATES

Due to new developments, Jessica tells Dusty she thinks she can get him a new bail hearing. She goes on to say she doesn't understand why he didn't tell anyone about the blanks. He explains that he was trying to protect Emily. "You'd risk going to jail?" she asks. "To keep my son safe from Montgomery, yes," he answers.

At the party, Tom explains that Craig is being arrested because he replaced the blanks in Dusty's gun with real bullets. "Why would I do that? Craig responds. "Is there any proof here, or is this just speculation?" Margo adds. Instead of answering their questions, Tom suggest they take things downtown. Turning to Meg, Craig says, "You did this, didn't you? You helped Emily set me up."

Jack confronts Carly about finding her earring in Simon's room. She denies being there. "Then why did I find your earring in his room?" "I don't know," she replies. When he demands she stop lying to him, she asks if she can have the earring back. He refuses to return it, saying it's evidence. "Of what?" she inquires. "A crime," he answers. When he accuses her of warning Simon about the arrest warrant, she tells him to think whatever he wants to think. He reminds her that she broke the law, defining it as aiding and abetting.

A little while later, he threatens to haul her down to the station if she doesn't tell him where Simon is. She says she doesn't know where Simon is. He says it's sad, because he can't tell if she's lying to him anymore or not. "You've gotten too good at it. I guess practice makes perfect," he concludes. She asks him why he told her he was about to make an arrest if he didn't trust her. He says he did trust her, because she told him she was through with Simon and was going to focus on her kids--their kids. He goes on to say he respected that, and that's why he told her about the arrest warrant. She retorts that he only done it to test her. He says no, he done it because he wanted her to know why he asked her to give him up. He says he wanted to prove to her that breaking it off was worth it, and she wouldn't have been implicated. "But now, guess what? Now you are," he adds, shocking her. In an attempt to defend herself, she says she wasn't trying to aid or abet. She says it was instinct, and she didn't want to hurt him (Jack) or the case. He stops her saying he doesn't want to hear it, not if she wants to do herself any good. When she asks if he's going to arrest her, Parker approaches asking if they're fighting. She says they're not, then asks if he's ready to go home. Jack turns to Parker asking if he can tag along too.

Katie continues to tell Henry she and Mike have to be together, but he only gets annoyed with her. After saying goodnight to her, he goes into his room for a drink. While pouring his drink, Simon startles him. Henry asks him what he's doing there. Simon says he needs a place to hide out, but Henry tells him he's a fugitive and can't stay there. Simon says, "You owe me, Henry. Big time."

"Look, it was a squeeze play, all right. I had Jack on one side, Katie on the other. I had no choice," Henry explains.
"There's always a choice, Henry."
No, not this time. Okay? They forced me to trick your jeweler into giving you up!"
"Whoa, whoa, whoa. That was you? You did that?"
"No, scratch that. Scratch that. Why do I owe you?"
"All right--all right, how's this? You convinced me to go after Carly when I knew d** well that she should be left alone. Now she's in this up to her neck--thanks to you."
"You're blaming me because you were foolish enough to take my advice?" he laughs.

Henry begins dialing his phone.

"Okay--whoa, what are you doing? What are you doing?" Simon questions.
"Do you believe in New Year's resolutions, Simon?"
"Uh-huh."
"I do. The top of my list this year is… uh… no more breaking the law," he says breathlessly.

Soon after, someone answers the phone and Henry asks for Detective Snyder. Just as soon as he asks to speak with Detective Snyder, Simon tackles him! During their feud, Katie bangs on the door demanding Henry open up! She says she hears him and knows he's in there. Simon stops fighting with Henry, when he hears him tell the person on the other end of the phone that he has no message, and to tell Detective Snyder he'll call him back.

Later, Henry lets Katie in. She admits it's her fault she lost Mike. She says she should have slammed the door in Simon's face the day he showed up, but she didn't. She says it's her fault she lost Mike, but it's Simon's too. She says she's going to make him pay, and she knows he's still in the hotel. She goes on to say she's going to find him and turn him in. Meanwhile, Simon is hiding in the closet listening to every word.

As Henry attempts to shoe Katie out the door, she catches on asking if he's trying to get rid of her. He admits he is. "I just want to go to bed," he says. Ignoring his plea, she continues to beg for his help. She says she doesn't know why she's being so pushy, then admits she's desperate and must find Simon or she'll lose Mike. Henry says he understands, but he can't be a cheerleader right now because he's all "pom, pomed out." "I use to be able to get you to do whatever I want," she replies. "Yeah, I guess I just grew a back bone," he shoots back, escorting her to the door.

Once Katie's gone, Henry tells Simon he has to leave. Simon apologizes, but says he has to stay. Henry demands he leave, reminding him that Katie won't rest until she finds him. He says that's why he needs to stay put. Henry continues to demand he leave, but Simon refuses. "Henry, I need a favor," he continues. Henry laughs, then says, "No, not from me. I'm going to bed." Grabbing Henry by the arm, startling him, Simon says, "I need you to get a message to Carly."

At the station, Tom explains the arrest to Margo, Craig and Dusty. He tells them everything Emily told to him. He goes on to say that they found the blanks at Craig's place.

Later, Margo questions Emily about Craig's shooting. Emily tells her the same story she told Tom. Next, Margo turns to Meg. She asks her why Craig says she set him up. Meg replies that she doesn't know. She says he was suspicious of her all night. Margo says she can understand that, because who would ever dream she would take an interest in her brother. She defends herself saying he has an interest in her. She goes on to say since she was spending the evening alone she thought why not. After all, she says it was New Year's Eve and her non-wedding was a few weeks ago. "So," Margo says, unimpressed. "So, staring at the television was a little more depressing than I expected. Do I really need to explain why I agreed to go out and be with people?" Meg replies. "No, no, no. Actually, we get it. We get it," Jessica answers. "Good," she says, excusing herself.

When Gwen and Will find Iris crying, Gwen asks her what's wrong. Iris shows her a china cat calling it "kitty;" she says her aunt wanted her to have it. Continuing to sob, Iris leaves saying she's going to go ask the DJ to play Candy's favorite song. Gwen tells Will she'd better go check on her.

Once Gwen finds Iris, she asks her if she's okay. She says she'll be fine, then goes on to say the last time she saw Candy they had a fight. Gwen sits down to confess that Candice sent her a Christmas card, but she admits she didn't respond. Iris explains they're family, and since its New Years, maybe they should try to work things out. Will approaches, but Gwen asks for a little more time with her mom. He reveals that he just spoke to Candice. Gwen confronts Iris about lying. She says that's impossible, because they told her she was dead. Will asks her if that's the same sister that sent her the china cat she gave Gwen, which he points out was made in 2005. "Let me see that," she says, taking the cat from Will. "Well, maybe she had to replace it," she stutters. "She's not dead, is she?" Gwen inquires. She claims she wouldn't do something like that. She goes on to say she's going to have to ask about that. She says she was in so much shock that she didn't ask questions. She smiles saying it's a miracle, her sister's alive! Gwen tells her to shut up. "Honey, you don't think I would lie about my sister like that, do you?" "I think you would do anything to worm your way back into my life," Gwen replies.

Iris continues begging Gwen to patch things up with her. She tells Gwen if she can patch things up with Will then surely she can patch things up with her too. Will steps in informing Iris she doesn't care about Gwen at all. Iris continues to sob, telling Gwen she came to her because she didn't know what to do. Gwen walks away saying she can't help her after this.

Once Gwen is gone, Will warns Iris, telling her if she comes anywhere near Gwen again he'll call her parole officer. After he walks away, she says she's just going to have to teach him some manners.

Katie approaches an officer asking if Simon has been arrested yet. He says he's still at large, but they believe he's still in the hotel. She orders the officer to go find him.

Bob arrives asking her if everything's all right. She says no, explaining that Simon escaped, and that the diamond she borrowed from him was one of the crown jewels of Leonia that was stolen at the ball. Bob seems surprised by the news, but asks her why she's so upset about the diamond when it wasn't hers. She expresses that it was her marriage, which Simon ruined. "It's all Simon's fault," she says.

Later on, she confides in Bob telling him Mike wants a divorce. He advises she fight for him--find a way to win him back.

Back at the station, Craig confronts Meg. She asks what he's so angry about. He says he just wants to know why she set him up. She says she just wanted him to get a taste of his own medicine.

Later, Craig informs Meg that there's many ways she could have set him up, but instead she put on a sexy dress and kissed him. He demands to know why she done it. He says all he wanted was his son. She says he's not his son, not in anyway that counts. She goes on to say his campaign to take out anyone who cares about him is ugly and it hurts him. "What was I going to do? They wouldn't let me near him," he replies. She says Johnny has two uncles and an aunt--all of them willing to pitch in and love him. She continues saying he doesn't need a man whose only goal is to make himself feel happy.

"Ouch. I still don't see how this is your fight."
"You made it my fight."
"How?"
"By asking for my friendship, when all along you were just using me."
"I was not using you," he replies, shaking his head.

As their argument continues, she calls him a greedy, self-centered jerk. Then she informs him that when she kissed him she felt sad, because he's not worth it! After she walks out, he says to himself, "Man she's gorgeous while she's angry."

Carly, Parker and Jack arrive at Carly's place. Parker asks them how long they're going to go without talking to each other. Carly tells him their fine. After Parker leaves the room, Carly confronts Jack about lying to her son. He says he didn't lie to him. He goes on to warn her about Simon. He tells her Simon takes what he takes and doesn't give her anything in return. "That's not true! He loves me, Jack, and I love him!" She apologies, saying she shouldn't have blurted out like that. He tells her to say it again. "I love him," she repeats. He informs her that he was using her for information, and the man she thinks she loves just ruined her. She says she hopes he's far away and never comes back. Jack's phone rings. "You spotted him? Where?" he asks.

After hanging up the phone, Carly tells Jack she needs to know if he's going to arrest her so she can make arrangements for the kids. He says he's not going to arrest her tonight.

After Jack leaves, Parker comes down asking what's going on. He says he heard them fighting about Simon. She tells him that there's a warrant out for Simon's arrest, and they haven't been able to find him yet. "What did he do?" Parker inquires. "He made a terrible mistake, Parker. We both did," she answers.

Outside Carly's place, Jack is on the phone. He orders that Carly's phone be tapped, and he says he wants 24-hour surveillance outside of her house. "Starting now," he finishes.

Dusty tells Emily and Meg no matter what happens he appreciates what they did. Jessica approaches telling Dusty she wants to go over his statement before they go to court. After Dusty leaves with Jessica, Craig's lawyer arrives. Emily and Meg worry because she looks confident. She goes inside and tells Craig that she's talked to the DA and they don't have enough to hold him. She says she'll be back to help him within the next couple of hours. Before she can leave, he asks her to wait.

Later, Meg and Emily wait impatiently for Craig's lawyer to come out.

"She's been in there for a while," Meg comments.
"Yeah, she must think she has a way out of this," Emily replies. "Oh my G… Craig doesn't have security cameras at Fairwinds does he?" Emily adds.
"I don't know. I hope not," Meg answers, looking alarmed.

Meanwhile, Jessica asks Dusty to promise her he won't jump bail, or run off to find Johnny and Lucy if she's able to get him a hearing. Without answering, he hangs his head. She tells him they can fight this, but the only chance he will have of getting custody is if he plays by the rules.

Craig comes out, but his lawyer is begging him. "Please, don't do this. It's a mistake," she says. He informs her that he appreciates her advice and counsel, but he says his mind is made up.

"Everyone, I would like to say that everything that Dusty and Emily said is true. I'm guilty as charged," Craig confesses, shocking everyone.

Next on As the World Turns…

Henry helps Simon communicate with Carly without fear of rollover charges or wire-tapping.

Emily tells Meg, "Because I know the man. Trust me, Meg, this isn't over."

Dusty tells Craig his confession guarantees he'll walk. "You're sure about that?" Craig smirks.