Six days later, the military are searching for any traces of Captain Atom after he was apparently obliterated from absorbing the radiation leak from the nuclear submarine. General Eiling already accepted the fact that Captain Atom may have deliberately committed suicide... and is at least satisfied to keeping this way.

Meanwhile, Peggy is consulting with her psychologist in regards to the frequent nightmares she has of not knowing her real father. In her dreams she see her father as a shining knight without a face (as Eiling had all photos of Nathaniel destroyed) trying to save his children, but it always end with him turning his back on his children. Her doctor theorize that Peggy is torn of what she has been told about Nathaniel Adam: a heroic man or a man guilty for treason. Or, in Peggy's words, a girl who is fixated on her father she last saw when she was four years old. Peggy soon finish her session. As she leaves, unknown to her she is being stalked by a man who is deeply fixated on her.

Dr. Megala and Babylon are attacked by Dr. Sarrok, Megala's former colleague driven insane. As Sarrok fire his particle weapon, the beams are suddenly diverted...by Captain Atom! He then divert the particle beams back at Sarrok, killing him. Despite saving Megala and Babylon, Nathaniel is furious with Megala because he blames him for going along with Eiling's agenda in forcing Nathaniel telling his loaded backstory on network TV. Megala pleads to Nathaniel that the lies were necessary. But Nathaniel has none of it and he obliterate Megala. This turns out to be a nightmare dreamed by Megala, who is deeply remorseful for Nathaniel's condition and never having the chance to beg for his forgiveness. At Eiling's residence, the general confronts Peggy over her encounter with Nathaniel at Dulles Airport. He warns her that "Cameron Scott" is a deranged man who is gone for good. Peggy is concern over the fact her stepfather had put her under surveillance, in which Eiling states that he is doing this for her own safety. After Peggy goes out for shopping, Eiling summons Homer Lockleed - the man who was seen spying on Peggy and Eiling's aide - and tells him that his service to looking after his stepdaughter is no longer needed.

Peggy continues her session with her psychologist and talks about Eiling. Her stepfather had been overprotective of her and her brother since he married their mother. But she strongly suspect that Eiling is not doing this out of love, and felt more like possessing them. Hence why she felt more longing for her real father. Something which her psychologist suspect she is developing some sort of Electra complex. Homer Lockleed, who disobeyed Eiling's orders, eavesdrop on this entire conversation and is getting an idea of how he will seduce Peggy.

Peggy suddenly gets a phone call in which the caller identifies himself as her real father, Nathaniel Adam, and he wants to meet with her.

Hours later, Eiling is on the phone with Martin Lockleed, an aircraft industrialist, concerning on Peggy's absence... until he puts the phone down as he sees Captain Atom burst into his den! Nathaniel states that he doesn't know what had happened to him but he has some words for Eiling: when he absorbed the radiation, Nathaniel realized how much of a sap he is for losing his nerve to speak his daughter and how much his children means to him. Bottom-line, he wants to see his daughter again without any interference. Eiling, however, admits that they are both looking for Peggy, and he suspects why: while talking with Lockleed, his colleague admitted that his son Homer is a schizophrenic and he told his father about "taking off with the girl of his dreams." Further added with the news of the younger Lockleed never reporting to his base, there is without a doubt he has abducted Peggy. Martin Allard abruptly arrive with a recording of Peggy's private phone line that was bugged this afternoon, revealing Homer's conversati

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