The boys get a dose of reality when Kelly tells them they have to go to school at least four hours every day while they live in Los Angeles. While the boys want to go to the fun Palm Woods school, they learn that Gustavo has arranged to have their school located at the recording studio, so they are never far from his grip. The boys do whatever is necessary to take down the "School of Rocque" and go to the Palm Woods school, with the big book that Gustavo gave to them. They got rid of all the teachers, & changed the interface & regulations of the School. At the end, Gustavo cracks and lets them go to the Palm Woods School. Meanwhile, an attempt from Mrs. Knight to home school Katie fails, so she tries to get Katie to act in a commercial to gain entrance in the Palm Woods, with the help of a Talent Manager (Mr. Bitters).