Georgina runs into Dan on her way to find Serena. Dan gets a call from a bartender looking for Serena. He got Dan’s number from her phone, which she left at the bar when she skipped her tab and took off with a couple guys last night. Dan is not too pleased.

Blair takes the boys to Serena, and she’s a mess. She’s puking and needs a bath. Blair tried to find her all night. Apparently Serena took off after last week’s confession that she killed someone. As Blair fills them in, Dan shows up after finding out from Lily that Chuck was going to Blair’s. He wants to see her and they won’t let him upstairs. Serena comes down on her own and instead of telling Dan the truth she lies and says she slept with someone else last night. Why on earth would that be a better thing to say to him? Dan says: “I’m done.”

Deroda calls Lily and tells her she should be worried. It’s like the old days. Lily takes off to do something she’s “done too many times before.” She rifles through Serena’s drawers and finds the tape. She watches enough to know what’s going on and then stops it before it gets too x-rated.

Serena starts to unload the truth on everyone. She says she was upset after she slept with Nate when he was dating Blair and went to meet up with Georgina. G had this guy there and they were supposed to sleep together (and be videotaped), but S suggests they do a few lines first. The guy (Pete) goes first and starts convulsing. G won’t let Serena call the police because there are drugs everywhere, but she calls 911 from his phone before they leave. She watches from across the street and sees him get hauled out in a body bag. After that she got on a train and left for boarding school. That’s why she was gone. Everyone is ready to jump Georgina when they find out about the blackmailing but Serena tells them not to do anything. She’s still mortified that Dan will find out. Despite that, I don’t think they’ll let her get away with it.

Lily confronts Serena about the video and the drugs and all the stuff that happened this morning. She threatens to send her to reformatory school. Blair pulls her aside and tells her Serena is battling an old secret and needs her help. Lily tells Bart she needs to bail on their rehearsal dinner to help her daughter.

Dan brings Sarah to Rufus’s gig. Of course, he’s gone to her for comfort after this whole mess blew up. A girl recognizes her as Georgina, but she plays it off. V confronts Sarah/Georgina and gives her a chance to tell all. No go. When Dan runs into Vanessa she tells him that she got a call from Nate saying not to trust “Sarah,” she’s lying about her name and who knows what else. Instead of waiting for V, Dan takes off, finds G and she cries and tells him some BS story about an abusive ex-boyfriend. Ugh. He eats it right out of her hand.

Lily arranges for Serena to go talk to Pete’s parents about what happened. She braves the situation and still doesn’t feel any better, but we find out Pete was an addict for 10 years and no one is blaming her for that night. Lily backs her up, and takes back what she said earlier. Serena wants to go see Dan now and explain things.

Blair finds out where G is and she and Chuck unite and head off to “get the b*tch.” Can’t wait for this showdown. Everyone starts arriving at the show. Lisa Loeb makes a guest appearance as the host of the event Rufus is playing at. Whoa. Talk about a throwback to the past. She plays her classic hit “Stay.” Rufus then rocks it out and Lily walks in. He starts looking at her while he’s singing and she bails. He’s clearly singing about her. He catches up with her outside and they lock lips. Better now than after the wedding!

G gives Dan some pathetic line about how she’s been falling him since they met. He tells her he wants to go somewhere quiet to talk. Clearly he’s going to make a play for her. I gave Dan too much credit; I thought he was way smarter than this. Obviously not. His hurt over the Serena situation is clouding his judgment. Someone is about to find these two making out… or more. Georgina calls Serena from Dan’s phone and tells her to be worried. She hangs up and makes her play, and Dan is not looking back. Oh no. Where is everybody when you need them?!?

Next week: Tune in for the season finale. Is Dan going to betray Serena and get played by G? Will the gang put Georgina in her place? Will Serena come clean with Dan and make up? Will Bart and Lily call off the wedding? What are your predictions?