Say Goodnight, Gracie

Both Rory and Jess avoid one another when they find it difficult to deal with their emotions after the fight at the party. When Lorelai and Sookie learn that the owner of the Dragonfly Inn has passed away, they see their chance to buy the inn of their dreams. Jess' long-lost father, Jimmy, shows up in Stars Hollow and introduces himself to Jess, then suddenly leaves town. Luke is furious when he learns Jess has flunked out of high school and gives him an ultimatum to repeat his senior year or leave. Rory finds out that Dean is engaged to be married. Lane's beau, Dave, pleads his case to a stoic Mrs. Kim.