Elaine has evidently been dating "Arnie" for several months now and thinks it's time for her "boyfriend" to meet her two pre-teen children. Arnie is both receptive and nervous at the thought of being around Elaine's kids. He confides in Alex (who else?) that his relationship with Elaine could depend on her children's acceptance. Nonetheless Arnie shows up at Elaine's, balloons and twenty dollar bills in hand. The kids are convinced that Arnie is alright with them, even after Elaine insists they return the cash. The episode ends with Elaine "accepting" Arnie for who he is and giving the viewers the impression that this relationship is going to be long term.
This is where and why the writers turn me sour on the entire episode. Elaine has been cast as an attractive blue collar cabbie with aspirations of some day joining New York's elite, pursued by many, yet we're asked to believe she would click with a whiny, dorky misfit who's half a foot shorter than her. They are the odd couple on steroids which makes this episode totally unbelievable and one of the show's worst.