During a school dance, Danny finally convinces Peggy that Kelton is not right for her, and she breaks off the engagement. By this time, Lloyd has finally completed a working machine. But when he goes to inform Danny, he discovers that the 'Harold' persona has completely taken Danny over and he refuses to change back, telling Lloyd that he likes his new body and life, and that he's never becoming Danny again. Immediately afterwards, Danny and Peggy become a couple. Kelton, refusing to accept this, tries to find out more on Forndexter, and discovers that 'Harold' is an impostor. He immediately informs the police, who arrive quickly to arrest him, giving Danny no choice but to transform back into a kid. Lloyd meets with 'Harold' and lets him know that the machine is ready to change him back. Before leaving with Lloyd, 'Harold' meets with Peggy just before the police arrive to tell her he has to leave town for good, not revealing to her the truth about his real idenity. Kelton, arriving with the police, barely manages to miss 'Harold'. Kelton gleefully informs Peggy of 'Harold's being a fraud and Peggy, realizing Kelton's true nature as a selfish jerk, hits "Jackjaw" in his own jaw, officially ending their relationship for good.