It's the start of the school year. For their upcoming anniversary, penniless Spinner wants to get the perfect present for Paige. His idea: get her the perfect locker, since the one she has been assigned she considers in purgatory. In Spinner's mind, Hazel has the perfect locker, but it will take some swift maneuvering to get Hazel to give it up. Emma has thoughts other than school on her mind. With Spike almost ready to give birth and with Spike and Snake's recent marriage, Emma has been thinking about her biological father, Shane McKay. Spike has told Emma nothing about Shane, except that she wants Emma to have nothing to do with him as he deserted them. All Emma vaguely remembers is meeting Shane once in a hospital when she was three years old, Emma remembering that Shane was wearing a doctor's uniform. Emma does whatever she needs to to locate Shane and know her biological dad.

Feeling like a wallflower, Manny decides to try out a new overtly sexual fashion style at school despite it contravening the school's code of conduct. Her attempt at looking sexy has the affect that she is hoping. The person who shows the most interest in her is her long time friend J.T., who is a bit confused about these new feelings he has for his friend. But he has to work fast to attract her attention as others are also showing interest in her. With her new look however is also a new self-absorbed attitude. Meanwhile, Craig, Marco, Jimmy and Spinner have formed a yet unnamed band. Joey has allowed them to use his garage as a practice space. Joey is vicariously reliving his teen-aged years through the band much to Craig's chagrin.

Spinner does not react well to Marco coming out to him. Without initially actually outing Marco to the general populous, Spinner does whatever he can to freeze Marco out of his life. Spinner spreads the news amongst their closest group of friends, all of who think Spinner is acting like an idiot. Marco will need all the support he can when he learns first hand what it's like to be gay in an intolerant society. A specific incident pushes Marco further in the closet. Meanwhile, Snake's initial medical diagnosis is possible leukemia. He tries to make light of the situation, which affects Emma more than anyone. Regardless of the final diagnosis, his actions, in part because of the possible diagnosis of leukemia, benefit Degrassi as a whole.

Emma decides it's time to move on in matters of the heart when she realizes she has feelings for new kid Chris.

The Christmas season brings more than just holiday cheer to Degrassi. Caitlin is confused and lonely when she realizes she still has feelings for Joey, who already has an arrogant new girlfriend. Craig gets caught up in his own lies when he continues seeing Manny behind Ashley's back.

Manny threatens to tell the whole school about their relationship if Craig doesn't dump Ashley once and for all. Joey has trouble getting a grip on his emotions after kissing Catlin; should he stay with Sydney or reunite with the girl who got away?

Rick makes friends with Emma and Toby when he steps in as a replacement on the school's quiz show. Things take a turn for the worse when Jay, Spinner, and Alex pull a nasty prank on Rick that embarrasses him in front of the entire school. Rick's vindictive side comes out, leading him to develop a horrible plan for revenge.

Humiliated and furious, Rick returns to Degrassi with a handgun in his backpack and prepares to take revenge on the students of Degrassi for laughing at him. Jimmy sympathizes with Rick and promises to back him up whenever other students harass him. Rick accuses Jimmy of being part of the prank and shoots Jimmy in the back when he tries to run away. Rick then moves on to the next person on his hit list: Emma.