A visit from an old acquaintance helps Mimi realize some home truths. Carl is furious when Ian starts dating his teacher.

Monica believes she might be pregnant and is the only family member to be disappointed when the test proves to be negative. The Jockey is robbed on the eve of Mimi's birthday and the Maguires set out to replace the stolen furniture though Karen is more concerned for the pub's future after a visit by a man from the brewery. Community policeman Stan dates a woman from the Ukraine.

Frank Gallagher wins the lottery, or so the residents of Chatsworth believe when Yvonne announces it on the local news! And Frank's not about to tell that he's never bought a lottery ticket in his life when free drinks are coming his way.

With the council dishing out initiative grants, Debbie wants invests in hens and potatoes to supply the estate with free egg and chips. Shane meets a desirable woman but gets a shock when they go back to Lillian's and whilst Yvonne encounters trouble from a girl gang, Stan accidentally runs a woman over. After his admitting that he should be wearing glasses, Carrie agrees to take the rap to save his job - until the woman threatens to sue.

Monica's mother Joan turns up with Alzheimers and a bag full of pills. Years earlier she had neglected Monica and let her boyfriend abuse the girl. Now,though only half lucid,she begs forgiveness before over-dosing. The Maguire boys plan a party with Mimi and Paddy away and trust to a scam instigated by Carl to finance it,only to find he has outsmarted them. Stan declares his love for Yvonne in the shop.

Karen is wary when Jamie's cell-mate Mark turns up and tricks Jamie into abetting a robbery. Fortunately the Maguires pull together to force Mark to tell the truth. With poor GCSE grades Carl feels he is a somebody at last when Paddy encourages him to box,where he does well . Unfortunately his last fight involves taking a dive. Yvonne is shocked when her schoolgirl daughter Meena declares that she is going to Islamabad for an arranged marriage though Meena's auntie Shaza makes her see sense. Shaza also invites Norma out for a drink and at last Norma seems to be over Monica.

When Stan gets caught in the crossfire between Yvonne and her kids, a full-blown row puts their relationship on the rocks. Things go from bad to worse when Yvonne finds herself held at gunpoint in the shop.

Stan moves in with Yvonne and witnesses her feud with Mimi after catching Chesney,her youngest,with drugs. Chesney decides he prefers the Maguires as his parents,until he ingests an E,whilst Shane becomes Yvonne's pet, working in the shop. Mandy goes on a date with the handsome Dex,only for him to croak after drug-fuelled sex. She and Karen dispose of the body but next day he turns up in the Jockey with no recollection of the night's events.

When Manchester experiences an earth tremor, Monica's water breaks and she goes into labour. However, on the other side of Chatsworth, the same tremor knocks Frank off his barstool and puts him in a coma.

Monica has had her baby,delivered with Ian's help and christened Stella Iana. Somewhat bizarrely the baby seems capable of speaking - or is it Frank hallucinating again? As Debbie hits sixteen she and Tom go public and the Gallaghers throw a party. It's bad news for Shane though when Kelly tells him she miscarried and for Ian,who is attacked and wakes up in hospital with total amnesia.

Ian leaves the area and Micky enrols on a film course where his penchant for erotic scripts sees him indulging in threesomes with tutor Zeta and her husband Ady whilst Mimi finishes his assignment. As the Jockey reopens after its fire damage with a night of impromptu strip-tease Karen and Jamie fall out but get back together and Carl,working at the hospital,is smitten with nurse Maxine though she wants their relationship to be casual. Mandy gets a new boyfriend in Jamie's friend Joe whilst Stan at last makes a break-through with Yvonne's kids and Norma,obsessed with a possible murder at the pub in the past,finds what she mistakenly believes to be human remains.

During a James Bond themed evening at the Jockey Paddy meets Maureen,the woman from Fergal's graveside,and Karen suffers a miscarriage. When Mimi and Paddy insist on an elaborate show funeral she wonders whether she wants to bring another Maguire into the world. Debbie enters Liam for a modelling contest,a cash prize accompanying the photo shoot in Blackpool. As the poster is for a child abuse campaign Debbie is not keen for Monica to know but she tags along with Norma and Frank,who ends up being in the poster. Whilst Carl's compilation of a black book of the sexiest women he knows lands him in trouble,Tom's sick prank to make Stan think he has hung himself will lead to his leaving the area with Carrie.

After a night of drink Paddy wakes to find himself tied to a bed in Maureen's house. But this is not a sex game. Maureen's teen-aged daughter died of an overdose of heroin supplied by Paddy and now she intends to inject him with his own merchandise. Lonely DSS fraud officer Bernard calls on Frank to find out why he is claiming for children who have left home. Frank tries to bribe him with drink and a session at the brothel but Monica's wiles ensure that the case will be 'lost' though Frank is unhappy with her seduction method. Micky begs Carl to keep quiet after Carl discovers he is into men and Carrie and Tom move on,taking the contents of the police house with them.

Maureen releases Paddy who returns home addicted to heroin though Mimi believes he has cancer. Kelly discovers the truth and tells Shane. She has resigned from the brothel and they are working a scam to blackmail married men having sex with her in hotels before Shane bursts in on them. However one man attacks Shane,who ends up in a coma. The Gallaghers believe they have inherited a four-bedroomed house from a deceased aunt but it turns out to only be a caravan. Karen and Jamie have yet another public row when she opposes his being co-licensee as she refuses to let the pub pass to the Maguires.

Frank is summonsed to Liam's school as the boy is granted a special scholarship due to his brightness. Both parents are required to attend so Norma poses as Frank's wife,the pair of them fancying Liam's school mistress. Kelly engages Meena as Shane's physiotherapist though her methods prove to be rather too hands on and Maxine and Micky grow close due to their mutual lust for Carl. As sole licensee of the Jockey Karen fires Jamie,who retaliates by selling his share of the pub to Joe.

When Liam is reported for missing school Ian discovers that,as he has a knowledge of sign language,Liam has been trying to help Danny find his father but this leads to a parting of the ways between Ian and Danny. Yvonne is concerned that Meena,who is now embarking on a modelling career,is posing for raunchier shots than she should and Mandy confides in Frank that she not sure whether or not to leave Joe.

Chesney loses his cherry to housewife Lorna and becomes infatuated with her. However,literally caught with his pants down by her tough-looking soldier husband he realises that the man allows his wife's promiscuous indulgence to make up for his own deficiency. Joe agrees to drop the charges against Mimi provided Mandy returns to him and Mandy agrees though she plans to leave him later. However Karen and Jamie are reconciled. Liam and Stella are taken into care after a neighbour finds Frank comatose in charge of them. Debbie lets fly at him and he reacts predictably - by getting drunk.

Despite Frank's efforts to stay sober Social Services doubt his parenting abilities and Debbie trying to snatch Liam and Stella from the foster-home does not help. Fortunately Yvonne is accepted as the new foster parent. She has persuaded Meena to return home from the brothel but a larger problem when husband Kash,who faked his suicide,leaving the children to believe he was dead,returns and wants money to vanish again. Desperate Yvonne and Stan devise a plan which ensures that this time he will stay dead. Mimi is released and a contrite Joe sells his share of the pub back to Jamie whilst declaring his love for Mandy.

Paddy has gone cold turkey but Mimi still believes he betrayed her with Maureen and is hostile. After Frank has defecated in public Debbie throws him out and he shelters in a church confession box where he overhears Mimi planning to hire an assassin to kill Paddy. He tells Paddy who decides he will pay the hitman more to kill Mimi though in the event the gunman intends to kill them both but is knocked out by Mark,Debbie's new boyfriend. Joe proposes to Mandy and Ian plans to return to Spain despite Liam's efforts to get him to stay by using Micky as a potential lover.

Angry to have lost his Child Benefit to Yvonne Frank gets her to pay him to baby-sit whilst farming the kids out to a woman in the pub at a lower rate. Maxine comes up with a novel way to declare her feelings for Carl in public whilst Karen finds she is pregnant. Suspecting that Joe might be the father she tells Mandy about their fling and asks her not to marry Joe. However Mandy is lured to Maureen's house where the older woman,desperate and deranged,aims to show Paddy what it means to lose a daughter and blows the house up,killing herself and Mandy.

Frank is summonsed to Liam's school as the boy is granted a special scholarship due to his brightness. Both parents are required to attend so Norma poses as Frank's wife,the pair of them fancying Liam's school mistress. Kelly engages Meena as Shane's physiotherapist though her methods prove to be rather too hands on and Maxine and Micky grow close due to their mutual lust for Carl. As sole licensee of the Jockey Karen fires Jamie,who retaliates by selling his share of the pub to Joe.