Work begins on the Duffy residence, with Jim Nolan's crew tearing off the back porch with a backhoe. We visit architect Jon Lail's office to see the proposed kitchen addition and are treated to a ""virtual reality"" walk-through of the space as constructed by computer designer David Munson of HOK Architects, a large firm that employs the technique to present and analyze its large commercial projects. Our host visits Sterling Vineyards, a remarkable architectural statement perched on a mountain at the northern end of the valley. Back at the house, the septic tank has collapsed under the weight of the backhoe, and job foreman Jeff Castille shows us the termite damage and crumbling foundation that further demolition has revealed.