During their personal investigation, Steve and Rachel try to find out what exactly has been happening to the Blue Ribbon kids, which leads them to a mental hospital called Bishop Flats following a lead on the disc. They find out that mind control is being used to make unruly teens become perfect so they can function properly in life, but the programming has some glitches that lead to momentary relapses and violent fits. They also find Caldicott's own daughter, Betty (Julie Patzwald), a failed project who appears to have been lobotomized by her father's experiments.