Red refuses to feed Eric until he gets a plan for his life. Jackie feels that Donna's new blond look will re-energize her spiritually and Donna vows to re-dedicate herself to feminism. Meanwhile Fez takes the first tentative steps towards establishing contact with a potential girlfriend and Kitty is scandalized that Bob is dating Pam and Midge simultaneously, forcing the anti-social Red to talk with him about it. Determined to have eat his mother's fried chicken for dinner Eric comes up with the plan: to do nothing and go nowhere for a year, deciding to hock Donna's engagement ring in order to finance his intentions.

Kelso is waiting for Brooke's call he's going to become a daddy, but Fez keeps pestering him with fake calls and answers. Sissy Eric joins Donna in a feminist demonstration for a safe park, even belting 'I'm a Woman', but ends up the prey of a ruthless herd after humping her there. When Hyde's dad according to Kitty's hospital file turns up, lawyer William Barnett, he turns out to be black, yet everyone pretends not to mind or even notice -Kitty breaks that silence- then shuns him for offering Steven money, yet only content once the two make up.

Kelso is back from Chicago: he has a daughter, Betsy, and his paternal status makes him even more desirable to Kimberly, but once he realizes she is someone's daughter too, his own conquest somehow feels sordid, unless her father... Kitty gets Hyde to call his 'lost dad' Barnett again. Eric decides to (ab)use his 'year off' for undeserved treats, such as bubble gum ice cream, and doing things he always dreamed off, such as vandalizing a local shop; when Red takes everyone to the muffler shop only to find it's out of business, Eric decides to shorten that word to 'muff' with the gang, but Red, who is tired of his failing job applications, has news after a visit to the bank...

After Red offers him a job, Hyde must choose between working with Red or his real father. Fez gets a job as a shampoo boy at the local beauty shop.

With an empty nest, Kitty decides on a course of self-improvement. Eric decides he wants to be an artist. Hyde learns the joy of business attire.

Eric encourages the gang to pull a prank on a crazy neighbor, but it backfires; Kitty throws a "coming out" party for herself to raise her self-esteem.

Fez and Kelso vie for the affections of a hot new client at the local beauty salon; Kitty devises a plan to heat up her private life with Red.

Hyde meets his half-sister, Angie, with whom he does not see eye to eye. Eric conceals his love of roller disco from the gang.

When an upset Kitty discovers the kids have their own plans for Thanksgiving, Red guilts Eric into giving up via Styx tickets to stay home for the holiday.

Hyde is upset when he discovers his new sister Angie has started dating Kelso; Donna agrees to help out Red's falling Business by plugging it on the radio.

Kitty gets into hot water with the social elite of her Christmas event when Kelso accidentally steals a box of donated toys at the precinct.

Jackie constructs an elaborate hoax about being engaged to Fez after meeting a woman with the perfect life; Donna and Eric conspire to ruin Kelso's romance.

Donna takes Jackie to her karate class, Kitty joins Red when he goes ice-fishing and the boys think the FBI is after them after Kelso accidentally threatened the president over the phone.

Donna has six tickets to the Packers game, exactly enough for the gang. However, Eric wants to take Red. Hyde says not to worry because he has a ticket switch plan.

Kelso enjoys rubbing in Hyde's face that he's doing his sister. Donna is jealous her new, music-ignorant radio station assistant 'Sizzling Sarah' is a sex symbol far sooner then she got a nickname, yet refuses to promote on a billboard in bikini a Tom Jones signing session, most popular with the local females. When Sarah offers to do it, station manager Stan fires Donna. Jackie and Hyde want each-other back but don't dare tell so, except she to Fez, who has an even hotter dream. Eric thinks up a nasty revenge. Kitty was too emotional to go for an autograph and delegate Red too impatient, so he fakes it, but the star is held back and Bob went too.

Angie proves it's possibly to be worse at mastering the art of 'burns' then her lover Kelso at anything intellectual. After another ass-aimed lecture from Red about wasting an entire year, Eric hits on great with fellow comics- and SciFi-erudite unemployed coach potato Stew Bailey, but is turned off seeing Stewie's ma is his best friend at age 36. Jackie has her TV 'news' show with Donna behind the camera, who get her freaky nervous just before it goes on air, so it all goes horribly wrong. After a pep-talk from fellow screw-up Eric she tries again, guest-starring 'slut expert' Michael, who also stars unexpectedly as the perfect good sport when Angie tries again.

Eric is inspired by the writings of Jack Kerouac and decides to hit the road; Hyde and Jackie share a tender moment thanks to Fez.

Donna and Eric get their first taste of parenthood after agreeing to babysit Kelso's daughter; a car show tears Red and Kitty's relationship.

Kelso chooses godparents for daughter Betsy; someone keeps breaking in to the record store.

Donna injured her back, but Eric's attempts to tend to her backfires when he only makes things worse; Kelso and Fez search for apartment together.

Michael and Fez move into their apartment, but can't agree who gets the room next to the bathroom. Red visits and gives them a taste of how rudely guests can behave, repaying the kids' own irresponsible behavior in his basement. Eric wants to become a teacher but learns he failed physical education and can only get his diploma by taking summer classes in gym. The person in charge of Eric receiving the diploma is Michael Kelso's rather sleazy brother, Casey (with whom Eric has not gotten along, as both men were interested in Donna, who is now Eric's girlfriend). Casey, now a gym teacher, requires Eric to do a single successful pull-up to attain his diploma. Eric finally prevails. Kitty, there to support Eric, finds herself in lust over the fit and macho Casey, despite his treatment of her son.

Michael has decided it's time to dump Angie, but doesn't know how to do it less insensitively then the many other times he dumped girls, so he chickens out. He could have spared himself the trouble: she dumps him because her dad has decided to promote her to manager of his Milwaukee record shop, although she hasn't learned anything about the business, so Hyde is not happy - or didn't she get that right? Eric finally has the paperwork ready to study, but now Red announces his college fund is now lost on the muffler shop, and student counselor Mr. Bray is only interested in girls, especially Donna. When he finally finds a solution, it comes at the price of a year further away then either Kitty or Donna could accept.

Donna is still furious with Eric over his decision to spend a year in Africa. Jackie announces she's been offered a job in Chicago - and demands Hyde decide whether they should get married. Red introduces Charlie, the son of a fellow war vet, who unwisely invites the gang to visit his father's beer warehouse. Hyde makes his choice - but Jackie has already left.

Hyde hints he was willing to marry Jackie to stop her leaving for Chicago. New guy Charlie is in the doghouse after turning up drunk and dressed as a schoolgirl. Fez and Kelso discover Jackie is still in Point Place. Donna tries to come up with a leaving gift for Eric, who departs for Africa in three days. Charlie accidentally sees Kitty naked, but it's Red who gets into trouble. Eric's present turns out to be Donna, dressed as Princess Leia. Hyde doesn't know how to react when Jackie repeats her ultimatum, and lets her walk off, angry. Kelso offers to give her a ride to Chicago. Charlie tries to get back on Red's good side - with typically disastrous results. Kelso tries to dump Jackie at the bus station, but she demands he take her all the way. Fes tries to tap into Eric's Star Wars fantasy with Donna.

Jackie tries to hide from Hyde while pleading with Kelso for a ride to Chicago; Eric's grand farewell to Donna doesn't go quite as planned.