The episode opens with Jesse trying to buy gas. He doesn't have cash, he doesn't have a bank account, and the cashier won't give him credit. Being at rock bottom pushes him to convince the cashier to take meth in trade. Jesse's decision that he's the bad guy has lead to him not trying to be better. This also indicates the reoccuring theme of desperation driving people to do terrible things.
Saul and Mike have a recording of Walt's fight with Skyler from last episode. They're trying to firgure out how to use it
Walt goes to Ted's office to confront Ted. He tells Ted to come out so they can "deal with this like men". In Walt's head, direct confrontation is inherently masculine, and not being appropriately masculine in this case is a sign of cowardice and weakness. Similarly, the fact that Walt is confronting Ted over this is a sign of how Walt constructs masculinity. He is framing this as a fight between him and Ted over Skyler, instead of Ted largely uninvolved in a fight between Walt and Skyler, because it's easier for him to comprehend another man impugning his masculinity by taking "his" woman. Much like the cop scene, this scene ends with Walt humiliating himself by trying to exert his masculinity.
There's something to be said about how unimpressed Saul is with Walt. Not just saying he's not special, but he doesn't find walt's concerns worthy at all. There's something about how Saul engages with masculinity that I think is interesting, but it's still an embryonic thought.
Walt assaults Saul for mocking him, and Mike just watches. Mike doesn't have any real emotional investment in what he does. Similarly, Mike is secure in himself, so Walt's attempts to upset him don't have any real weight.
Walt's flirtation/seduction attempt on the principal creeps her out more than anything.
Hank is preparing to return to El Paso, when he gets a call about the blue meth being back. He decides to stay, since chasing the blue meth was something that gave him purpose, and makes him feel like he's accomplishing something
Walt is still trying to save face in front of Jesse, dismissing his firing as a sabbatical. Jesse is trying to convince Walt to come back to cooking, and in the course of his argument, says that cooking meth is the only thing he's good at. Walt says Jesse is good at lots of things, which falls flat since Walt is just fine with Jesse's low self-esteem when he can get something out of it.
Walt sees Jesse's meth, and is angry at Jesse "stealing" his formula and "cutting him in". Walt sees this as Jesse trying to exercise control over him, when he wants to be the one in control. He also gets angry at his name being associated with an inferior product. This is when Walt's true motives come bubbling up again: namely, pride.
Gomez sees Hank's belief that heisenberg is back as wistful thinking, and Hank desperately looking for purpose. We as the viewers know Heisenberg is coming back, but Gomez is right about Hank's motivations.
mike and Gus are talking about Walt cooking again. Gus refuses to use fear as a motivator, and when he hears that Walt and Jesse are fighting, he agrees to deal with Jesse, because he knows that Walt's pride won't let that happen.
Hank has connected the RV to Heisenberg
The episode ends with Walt being aware Jesse is cooking again.