. . .

Madge is handing out drinks and Marlene is trying to tell Harold that the song lyrics are wrong. Just then, the remaining Kennedys arrive and Karl says that Susan took ages to get ready. Phil starts handing around sandwiches, while Billy asks Toadie for advice on how to handle Anne. Anne asks Lance for advice on Billy, while Ruth and Phil go to get some more snacks. Toadie and Lance discuss Billy and Anne, and then Toadie says he has a plan to get them together.

. . .

At number 28, Lance and Toadie are going through some cds, trying to find music that Anne and Billy will like. He explains that they’ll wrap one present up and write ‘To Billy from Anne’ and another ‘To Anne from Billy’. Lance gets carried away and suggests writing a love note, but Toadie says they need to keep it simple.

Back at number 32, the neighbours are singing again. Phil offers to page turn for Ruth on piano, but then admits he can’t read music. She offers to help him make some mince pies for the Christmas party, then Harold tells everyone to get ready for the next song. Marlene says how great it is to see everyone together and Harold blows his tuba to stop Mal and Cath kissing on the sofa. They then start singing ‘O Come All Ye Faithful’, while Murray listens from the Kennedy’s backyard.

. . .

. . .

Madge and Harold arrive home, talking about how well the evening went. He tells her that he simply can’t wait any longer and that he wants to open his presents. She admits that she never thought she’d be sitting under a tree with him again. He has bought her a casserole dish and she has bought him a large photo frame for all his future memories. He tells her he’s falling in love with her all over again and she says she never stopped loving him.

At number 32 on Christmas morning, Anne has bought Ruth a rather ugly shirt, but she pretends to love it. Ruth tells the kids that she’s sure their father has sent them presents. Lance then produces the cd from Billy and Anne is shocked when she realises who it’s from and that she never got him anything.

. . .

The Kennedys are opening their presents and Susan gets a vase from her aunt. Toadie opens some shirts from Susan, while Billy opens his cd from Anne, though he tries to avoid telling everyone who it’s from. Mal grabs the wrapping and tells everyone, who then proceed to take the mickey out of Billy and Anne. Darren arrives at the door, while Karl opens a box containing lots of tools from everyone, so he can be a better handyman. The boys leave to go and do some work on the pub.

Madge and Lou are preparing the backyard of number 24 for the party. Madge says she’s been on the phone to Scott and Charlene all morning, and that Daniel got his first bike. Lou teases Harold about his non-alcoholic punch, which Harold then goes back inside to make. Lou gives Madge a pearl necklace as a gift and Lou asks if Harold’s gift pales in comparison. Madge isn’t impressed by this remark, but thanks Lou anyway.

. . .

. . .

Phil and Ruth are making mince pies in the kitchen of number 26 and she’s appalled by his techniques. She says they’ll end up looking like little bundles of dog droppings. Hannah and Helen come in and take the mickey out of their arguing, then they leave for the party, while Ruth tries to show Phil what to do.

At number 24, people are arriving for the party. Lance tells Anne that Billy has just walked in and he walks up to her and gives her a card. He says it’s not much, and she says he’s given her enough already. She then gives him a card too, and Lance and Toadie realise it won’t be long until they work out the scam.

. . .

. . .

Outside, Billy and Anne start talking about the cds, while Lance and Toadie listen from a distance. They both claim not to have given the other one a cd for Christmas and then see Toadie watching and realise what happened, they chase him back into the house. Lou and Harold start bickering over the barbeque and Madge tells them to give it a rest, since it’s Christmas.

Inside, Anne tells Lance that he’s made her look like a complete idiot in front of Billy and she’ll never forgive him. He jokes that they’ll have something in common. Meanwhile, Billy tells Toadie he went too far and he’s sick and tired of it. He says they’re no longer mates as mates wouldn’t treat each other like this. He says he’s not going to come on holiday with him to his mums and he can find a new best mate. Billy storms out and Anne sees him, realising that he can no longer even look at her. Helen then asks Lance to go over to number 26 to find Ruth with the dessert and to chase up Phil, who’s meant to be dressing up as Santa for the party.

. . .

. . .

Ruth and Phil take the mince pies out of the oven and she says they look ok, but he says they’ll taste fine. He admits he should have done it her way and they start to argue, before laughing and realising that they argue about everything. He asks why they argue so much and she wonders what they’d do if they weren’t fighting all the time. They start to kiss, until Lance bursts in. Ruth tries to explain, but Lance says it’s no wonder his dad didn’t stand a chance, before storming out.

Back at the party, Libby goes off to visit a friend, while Lou starts offering food around. Susan says she’ll wait until Karl and Mal arrive. Sarah and Cath ask Harold if there’s any champagne and he points over to the other side of the yard, just as Lou walks by. Harold knocks Lou into the pool and Lou gets out and starts accusing Harold of trying to ruin his Christmas. Harold shouts back, saying that Lou can only hurl abuse from a safe distance, while everyone else laughs at the pair of them.

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