Josh is still burned about losing last week since he's the only one on the show or Manhattan or the planet for that matter who needs or deserves an extra $20K (didn't you get the memo?).

Heidi tells them for this week's challenge "we really want you to spread your wings." They march off to the workroom where they are greeted by Uncle Tim and Collier Strong and an assortment of exotic birds making bird noises on their perches.

Day 2. Tim comes in to spring a surprise on them; they will be required to create a second Seventies-inspired look with a budget of $50. "I guess it's not so little," says Anya, who created her first look with a budget of $11.50.

Tim tells them fashion and music are inextricably linked -- "Think about the Beatles! Or Lady Gaga!" -- and their friends at Garnier have partnered with Rolling Stone "to make rock and roll history" by presenting an unsigned band on the cover of the magazine.

This week's challenge, informs La Klum cheerfully, has to do with going back to school to further their education.

This week's guest judge is model and designer Erin Wasson. La Klum herself is in New Balance along with a spangly black jumpsuit. And the show begins!

Heidi presents their next challenge by saying that they are designing for a very important client who knows a lot about fashion. Enter Nina Garcia.

This week's challenge is delivered to the group by Heidi on stilts. "For the next challenge we want you to think big," she smiles.

Tim meets the gang outside Petland Discounts to advise them that this is the Unconventional Challenge: they are to design a garment using items purchased in the store.

We're back here once again, watching Heidi, Nina, and Michael Kors blithely destroy young dreams.