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A show called "America Up Close" is doing a "blended family" segment and the Foster/Lambert family is chosen. Carol is embarrassed because the whole world will see that the kids constantly fight. Carol's prediction was correct and she ends up making Frank sleep on the couch. Dana convinces the other kids to be nice to each other. The next day during filming, the kids are nice to each other and Carol and Frank make up.

Carol goes into labor and the family heads for the hospital, except for the Foster children who were forgotten. Carol wants a natural birth without drugs but changes her mind when she feels the pain. Lilly Foster-Lambert is born healthy.

A movie company is coming to Port Washington and all the Lambert girls try out for a role in the movie. However, only one can get the part. Carol is baking cookies for Lilly's class's bake sale, when it suddenly becomes competitive.

It's Lilly's 6th birthday coming up and Dana thinks it will be easy to supervise, as long as you let them know who's boss. Fabio comes to Jean-Luc's studio for a hair cut, which has the girls besotted.

Al is offered a trip to Disneyland but needs $500. JT comes up the idea of babysitting many kids at once but they are overwhelmed. Frank makes Cody the foreman but the responsibility doesn't sit well. Karen's prom tries Carol's patience.

JT finds out that Sam is having a dinner date with a workmate and becomes very jealous when they become room-mates. When Jean-Luc has a tax bill after spending his money on his girlfriend, Carol decides that they will lend him the money.

The family--including Cody--vacation in Hawaii. Among other adventures, Dana meets the man of her dreams: a beach bum named Brian. The two hit it off, and the romance quickly blossoms to the point where Brian gives Dana a 6-karat solitaire diamond ring in a Tiffany setting. However, Dana is heartbroken when Carol finds out and objects to the impending marriage.

Frank and (especially) Carol refuse to accept daughter Dana's engagement, they get into a huge argument. Dana considers eloping with sweetheart Brian, but when the two begin talking about their future, they realize that perhaps they were not meant for each other after all and (sadly) break it off. Meanwhile, the others become engaged in adventures involving sand castles and buried treasure.

Frank and JT swap seats at a basketball game. JT wins a pickup truck for being in the lucky seat, which Frank thinks that he should have. When Karen and Al see a very handsome officer speaking at a women's seminar, they fight over him.

Cody hopes to expand his "coolness" when he joins a fraternity ... but then learns one of the dudes has tried to go a little too far with Karen.

Dana was eager to see 'the Amazing Codini' perform, but realizes too late he takes her into the magic box, hasn't fixed the necessary link to get out again and has no back-up plan, even knocks it over- they are trapped indefinitely, to her absolute horror, while he enjoys the closeness; yet salvation is within reach all the time... Meanwhile Carol dragged Frank to a beauty convention (a fake temperature doesn't fool experienced parents), then told him to entertain himself as she couldn't interest him in the least, only to finds Frank enjoying a female participator's manual hair-care too much... Reading about a cash price for the baby chosen at a Yum-Yum baby-food commercial audition, Lilly's babysitters J.T. and Al dashed off thereto but are too excited. When their parents return, Lilly has been switched with a baby-boy...

The family suspects that the reason behind J.T.'s chronic poor scholastic performance might be dyslexia.

When she has trouble making (and keeping) friends, Al decides to start hanging out with a group of bad girls. When Dana alerts Frank about Al's new friends, he prohibits her from seeing them again, leading to a huge argument. Eventually, Al realizes her friends are no good when they let her take the fall for stealing Cody's electric guitar.

Mark's teacher wants him to go to an academic academy for gifted students. Frank and JT will win Super Bowl tickets provided they dress up as cheerleaders, but there is a catch. Cody invents clothing made out of food.

Port Washington's Lodge elects Frank as first deputy Grand Mallard. So he can coach Cody to pledge as new member, and supervise that his project isn't too ludicrous even for that bunch. He also gets to MC the Mother and Miss Mallard pageant. Karen sees that as her first step to a modeling career, so Carol can't refuse entering, nor leave after judge Howard overdoes his customary 'flirting'. The grand day arrives for both.

Frank and Carol announce to the family that they're going to have a baby, and the kids are underwhelmed and are not happy. To improve their attitude, Carol insists that they all go to family therapy.

Dana is taking Karen to a college party and Al talks Dana into taking her. Karen becomes jealous when the college Casanova is attracted to Al and not her. Carol is having a sale of Frank's old junk, and he does his best to keep it.

Dana assesses Cody's mental state for a psychology class assignment. Forced to make a decision between college and work, J.T. chooses work, much to Carol's chagrin.

Frank's old high school buddy arrives for a visit, and it becomes obvious he still hasn't grown up. Meanwhile, Cody wins a live turkey in a supermarket raffle, but struggles with his conscience when he learns the bird is about to be butchered.

Mark is doing homework for a classmate because he is being threatened. Carol feels that Mark should confront the bully in a peaceful way while Frank suggests that Mark defend himself. The bully happens to be a girl which gets Al's attention. Al begins to consider Mark a brother and sticks up for him. J.T. is running the 100M for the JV track team and breaks the school's record. Dana has to write a report on J.T. for the school newspaper. She writes a negative article but J.T. gets the typesetter to publish a very positive one.

JT has borrowed a Porsche from work and impresses a waitress. He lies and says that it is his and, using money he finds, he buys her an expensive necklace. Frank is reluctant to go with Carol to the gynecologist for her ultrasound.

Karen is trying to get into the Delta Theta Zeta sorority and is going to their pledge dinner. Dana is also invited. Frank's business is very slow when they hear that an old friend of Carol's is about to start building a big hotel.

Frank and Carol are arrested by a know-it-all Barney Fife-type deputy on Christmas Eve when they are accused of being burglars.

Frank feels hesitant when Carol buys a marriage-improvement book.

When J.T. is sent his first credit card. Frank doesn't think he can handle the responsibility, and a spending spree soon proves this. Dana is unhappy about going to a local public college and her first English essay is a disaster.