The Dream Machine is a machine that gives people what they want at the cost of the environment. A village discovers it and it changes how they act towards others and material wants as well as causing them to have a disregard for home and surrounding environment.
Kahmunrah and Larry try to convince the other person to give over his possession first, but neither person trusts the other. Kahmunrah then tries to set rules on how Larry can behave, but Larry ignores them.
Malcolm has a heart-to-heart with Reese and his feelings regarding to school. They then proceed to go over what Reese did during the day that could have resulted in the blood seperating in the test tubes.