Former acquaintances of John Scott begin to show up not looking quite a bit different than their file photos. This is probably due to the fact that they have been infected with an unique virus which transforms them into creatures from nightmares. When the first patient doesn't survive the transformation, the second "begins to remember" that the man who is creating these terrible bio-weapons is known only as Conrad, and that the drop for this particular virus is happening right now. On top of this both of the infected patients are carrying glass discs similar to the one found on the DEA officer in "The Ghost Network", which makes Olivia wonder if John himself has a disk in his hand. Broyles reveals to her that John wasn't buried and that Nina Sharp has been trying to retrieve the data from the disc in his palm.
And where is the Observer in the midst of all of this confusion? Well to everyone's great disappointment, he was again not technically in this episode. Yes, it is true that he was once again digitally added into this show, but this time he was added so far to the left of the shot, he didn't even appear on regular sized televisions. Don't worry, this has been fixed for the DVD release, so you can see him in the picture below, on the left side of the field at the beginning of the episode. I have included a red arrow to point him out if you miss the box.