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It's December 31st, 1979. Eric is flying back from Africa and should be arriving this evening. Donna has decided to miss New Years to get a jump on leaving for college, and also to avoid the drama of Eric's return. Fez and Jackie, now officially a couple, still haven't had their first real kiss. So the gang, trying to find something meaningful to do on the last day of the 70s, before Donna leaves, has yet another circle.
Kitty is stressed out about moving to Florida. She tells Hyde she doesn't want to move, but she is afraid to tell Red because he's so excited about it. Red gives Hyde a check - he's been saving all the rent money Hyde's been paying, the money is to help him get started. Red and Hyde flash back to all the great moments that Red threatened to put his foot in someone's ass.
Jackie and Fez try to kiss, but keep breaking up laughing instead. Meanwhile, Hyde brings Kitty Packers season tickets, thinking they'll get Red to stay. The tickets are really hard to get, Red's been on the wait list forever, but Hyde spent the money Red gave him on them.
Fez and Hyde hang out on the water tower reminiscing when Kelso shows up to spend New Year's Eve with the gang. Hyde tricks Kelso into jumping off the water tower one more time. In the Forman driveway, Donna reveals that she decided to wait to see Eric one last time. But Red comes back from the airport without him - Eric missed his flight.
Kelso and Hyde spend some time in the basement reminiscing while Fez takes Jackie up to the water tower. He shows her that, in order to rewrite some of their history, he changed the "Michael plus Jackie" painted on the side of the water tower. But because it was dark, he accidentally changed it to "Michael plus Fez." Fez tells Jackie how much he loves her, he always has... and they have a long, romantic kiss.
Kitty gives Red the Packers tickets, but he says it's too bad he won't be able to use them since they're moving, since he knows how much Kitty is looking forward to moving. Kitty tells Red she doesn't want to go, and Red agrees to stay, as long as he's with Kitty.
Later, during the New Years Eve party at the Forman house, Red announces that they're not moving and Kitty gives a heartfelt speech about how much she would have missed everybody. Donna, emotional, goes outside to get some air. As she sits on the hood of the Vista Cruiser, reminiscing about Eric, Eric walks up. He explains he missed his flight, and the two talk, somewhat awkwardly. He says he's sorry he left. Clearly, the two are still in love with each other, and they kiss. Then, seeking something to take the edge off, Eric heads down to the basement to have one final circle with the Kelso, Hyde and Fez in the last few minutes of the seventies. They run upstairs, counting down to midnight. Ten, nine, eight, seven, six, five, four, three, two, one...
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