Back on the island, Sawyer sleeps, recovering with a few stitches in his arm. He wakes up to find Kate sitting nearby with his letter. She explains to him that since she first read it, she's been feeling that something wasn't quite right. So she continued to read it -- over and over again, when it occurred to her that he wrote the letter -- and a 1976 Bicentennial postmark on the envelope confirms it. Sawyer admits that he was just an 8 year old kid when he wrote it. He explains that when he was nineteen, he got into trouble where he owed a lot of money to some very scary men, so he took the name of the man he was hunting and became a "confidence man" himself. But just when we think Sawyer is softening by opening up to Kate, he shuts down and chases her away.
Elsewhere, Sun brings eucalyptus leaves to Shannon, helping her to breathe, while Charlie brings some 'imaginary' peanut butter to Claire and convinces her to come to the caves. Sayid tells Kate he's leaving the camp because he can't face what he did to Sawyer -- he plans to walk the shore and map the island. And Sawyer takes a lighter to his letter, about to burn it, but he's unable to go through with it and pockets the letter, right along with his anger.