Kenneth started taking orders from Tracy. Tracy's demands were very difficult, including retrieving nachos from Yankee stadium and finding a very rare and exotic fish for Tracy's aquarium.
Liz was faced with the difficult situation of handling her assistant. Her assistant was dressing in skimpy outfits, causing all the men to take their attention away from work. Her assistant didn't understand what was wrong with the way she dressed. In fact, she helped Liz dress like her. But that only caused laughs from her co-workers.
Liz had made an appointment to apologize to Jack for kicking him out of the writers' room. He completely understood that she was doing what she had to do. But, he had to be assured that the writers really did like him.
Now that Liz and Jack had developed a friendship, she thought she could get away with anything around the studio. She tried to get Jack to let her and the writers eat pizza on the patio. She ended up embarrassing Jack in front of his business colleagues. He ridiculed her in front of everybody. And apologized afterwards.