As Jimmy prepares to meet with a young computer genius about a new business venture, he asks Dave to join them in order to make the atmosphere less intimidating. However, when the longhaired Erik Stark arrives, Jimmy orders Dave to get rid of him at once. When pressed for a reason, Jimmy admits to an irrational fear of men with long hair as the result of a thirty-year-old incident in which some hippies beat him up. Meanwhile, as Lisa is training her new dog, Beth and Max conspire to break almost all of Daisy's good habits. When Joe recommends hypnotism, Jimmy allows himself to be taken back in time to face his fears. With Matthew at his side, he makes his way through the office, circa 1968. However, when Matthew becomes a problem, Jimmy demands that he be removed from the hypnotic state, leaving him to go on alone. Meanwhile, after ruining Daisy's highly regimented diet, Beth and Max try to change her name. And once Lisa forbids her from playing with Daisy, both Beth and the dog disappear. At Dave's request, Joe brings Jimmy out of his trance. But when Joe insists on putting him back under, Jimmy thinks that he, Dave and Lisa are hippies. And when Matthew is accidentally hypnotized again, he also ends up back in Jimmy's dream. Finally, as a result of the hypnotism, Jimmy realizes that a gang of bikers, not hippies, attacked thirty years ago. And while Jimmy's fear is cured, Beth finally returns with Lisa's dog.