ShortSummary
| - Throughout the episode, background information is being shown from "archives" about the Roswell incident, MJ-12, Vannevar Bush, MEMEX, Xanadu, John C. Lilly, the Schumann resonance, and Eiri Masami. During that time, Lain gets a microchip from JJ, the DJ from the Cyberia nightclub. She then asks Taro on a "date", to ask him about it. After being scared to death, he admits it is code made to disrupt human memory, made by Knights. He takes their defense, but admits not knowing much about them.
- Lain resolves her inner quest for identity and takes radical action.
- Rumors are flying around Lain's school and in the Wired with regards to numerous senior students of various high schools committing suicide, with each of the deceased being addicted to the online action game, PHANTOMa. Interested, Lain investigates only to discover the deaths were most likely caused by the elite secretive hacker group known as the Knights of the Eastern Calculus .
- Knights activity starts surfacing as they make the evening news. Lain gets more and more involved in the Wired, being connected even in class through her HandiNAVI. Alice starts worrying about her closing up again, saying she starts resembling "her old self". The Men in Black finally make their move, asking Lain to follow them to a Tachibana office where a man wants to know more about her, her origins, her parents....
- The frontier between the Real and the Wired falls down. The Men in Black receive their final payment from their employers. Eiri Masami makes his final move, resulting in one last confrontation with Lain.
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