Frasier’s disagreement with a neighbor spins out of control, and Daphne makes a startling confession to her mother.

After locking horns over a parking dispute, Frasier and his upstairs neighbor Cam Winston, square off over the enormous American flag Cam has unfurled on his balcony. The flag completely covers the windows in Frasier’s condo, so Frasier calls an emergency meeting of the tenants’ association. Meanwhile, Simon’s bad behavior causes him to be thrown out of Frasier’s apartment, as well as Roz’s.

Stung by her husband’s abandonment, Daphne’s mother insists Simon will take care of her. But it doesn’t take long for Simon’s true colors to emerge. He tells Daphne he’s heading for California. She tries to talk Simon out of leaving, but he packs his bag and takes off – leaving Daphne to pick up the pieces. When Mrs. Moon hears about Simon, she vents her frustration on Daphne, who has had it with her mother’s constant sniping.

Daphne reveals that she’s not a virgin (as her mother believes), and that she’s moving in with Niles. The confrontation leaves Daphne shaken, but Niles is proud of her. Mrs. Moon tries to call Daphne’s bluff by saying she’s leaving, but when that doesn’t work, she feigns a knee injury so Daphne can’t toss her out. Over at Frasier’s condo, the residents line up against him in favor of Cam’s patriotic tribute. Defeated, Frasier agrees to pay for a rooftop flagpole, where Cam can display his flag, while at Niles’ place, Mrs. Moon appears to be staying put for the foreseeable future.