Pac Star Banking Corporation funds the youth oriented scheme called Head Start. The scheme allows five project winners to live rent-free in a renovated foundry, as they pursue their dream.
It's the first meeting at the Foundry as Garrett drills the new team on the rules and regulations of life at Head Start. There aren't many rules and they're pretty basic.
While at the velodrome for another series of bike trials, the boys encounter Terry who has developed a conspiracy theory as to why they were selected for the program instead of him.
Seth wants to try again with Katherine and asks Kyle for advice. Kyle reckons it's easy. Show interest in her project and make yourself indispensable to her.
Growing dissent within the group forces Garrett to suggest a little bonding exercise aboard a sailing ship, which turns out to be more turbulent than he could have ever imagined.
Kyle becomes a willing participant in the relationship with John Allott's young wife Felice. She convinces Allott to give the boys a chance and then threatens to manipulate him and have Allott pull out if Kyle doesn't keep up the affair.
Basia's birthday rave offers the group a chance to relax and unwind, but when Basia finally decides to make her feelings known to Kyle, the night takes a turn for the worse.
Basia films Amanda without her consent and becomes faced with a moral dilemma and Seth's romantic involvement with Skye puts pressure on his friendship with Kyle.
Kyle finds himself in trouble as Skye tries to sabotage his partnership with Seth and Clare sets out to prove she can be successful without Patrick's help.
The romance between Rod and Clare is now in full swing. Loc however isn't won over by Rod and suspects his business dealings will be detrimental to Clare and the yabby business.
When Clare turns up at Rod's house unexpectedly she is faced with the truth about Rod. Devastated, she makes a choice that will affect both her and Patrick's future.
Amanda is taken to hospital as it looks as if her cancer has reached its final stages. She leads Basia to some old footage of her time in Papua New Guinea - none of which makes sense.
Amanda finally tells Basia the full story behind her solo flight from Bangkok to Darwin. The confession is recorded on film and Amanda makes Basia promise to make the truth public.
Loc's ex-girlfriend Leticia turns up at the Foundry in need of his help. Her family has fallen victim to terrorisation, receiving abusive phone calls, letters, even bricks thrown through their windows.
Bob Deacon from the bank drafts a retraction that Loc is obliged to sign if he wishes to continue on at Head Start. Loc objects to signing as he feels there's a principle at stake.
Garrett is furious upon discovering that Kyle and Seth have been rejected by the Bicycle Association and didn't tell him. The boys argue that they're busy working on something big.
Posy moves into the Foundry much to Basia's distress. She and Basia lock horns. Kyle is left juggling a near impossible situation - to keep both his pregnant ex-girlfriend and his current girlfriend happy.
Aaron (Charlie Claussen) gets a fantastic opportunity to landscape a high-rise balcony for wealthy clients, Malcolm (Yves Stenning) and Anna (Elizabeth Maywald).
While earning extra money videoing a kid's birthday party, Basia inadvertently catches a car thief on film. She discovers the owner of the car to be the TV personality Steven Perry (David Roberts).
Katherine arrives back unexpectedly from her promotional tour. Although rundown, she convinces everyone that the tour was a success and she's merely having a few days off.
Katherine finds it harder and harder to fit back into life at Headstart. Pressure from Garrett and a perceived lack of support from Patrick coupled with a mugging, send Katherine over the edge.
Patrick's yabbie export business is thrown into jeopardy when his stock becomes the victim of vandalism. When he investigates he discovers that the vandalism is the work of an extortion ring.
Katherine's hand is injured in an attack on Patrick's property, causing him to decide to pack it all in and return to the country. Hector, Aaron's father, tries to convince Aaron to accept the landscaping job, however, Aaron refuses.
