Jerry begins dating Melissa (Kathleen McClellan), a woman who is comfortable being naked in his apartment in nonsexual contexts. She walks naked into the kitchen to eat waffles and is also naked while playing board games. While George is envious, Jerry soon grows uncomfortable with Melissa’s quirk. He finds her unattractive when she does anything naked that involves her muscles contracting. Eventually, Jerry tries casual nudity himself, but Melissa does not support male nudity (“bad naked”). Elaine later explains that the female body is art while the male body is just utility. Ultimately Jerry convinces Melissa to wear clothes more often, but regrets his decision when he can not stop thinking about how good she looks naked. Unfortunately Melissa can not stop thinking of how bad Jerry looks naked, and the relationship is ruined.
George learns that Jason Hanky (James Spader), a childhood friend of his nicknamed “Stanky Hanky”, is a recovering alcoholic and, as part of Step 9 of the Alcoholics Anonymous’s Twelve Steps, is apologizing for all his old misdeeds. George gets angry when he does not receive an apology from Jason for having insulted him at a party a few years earlier by refusing to give George a sweater for fear it would be stretched out by George’s “large” head. But Jason refuses to apologize, saying that the largeness of George’s large head is a fact, and that the sweater was expensive. This enrages George so much that he is brought by one of Jason’s sponsors to an anger management class.
Kramer decides he enjoys showers so much that he is going to spend most of his time in his shower, even going as far as to buy a waterproof phone, prepare a dinner there and install a garbage disposal in his bathtub drain.
Elaine’s co-worker Peggy (Megan Cole; also seen in the episode “The Susie”) is a germophobe who dislikes Elaine because she thinks she is promiscuous and therefore full of germs. Insulted, Elaine takes revenge on Peggy by going to her office and rubbing her stapler under her armpit, the keyboard on her rear end, and finally coughing on Peggy’s doorknob.
David Puddy reveals to Elaine that he too is a recovering germophobe. Later, Elaine makes up with Peggy by inviting her for over for a dinner cooked by Kramer. But when Kramer reveals that he prepared the dinner in the shower, they are all horrified and Peggy and Puddy have to go back to Germophobes Anonymous, with Elaine now joining them.