FADS! We didn't like them the first time around, but they're bringing them back. Horrible fashion trends such as overalls, baggy sweaters, neon, and shoulder pads!
The designers group themselves into teams of three to create a collection of 3 looks that incorporates all 3 outdated trends, but is relevant and cohesive for today.
The teams:
Jillian, Kevin and Rami - overalls, poodle skirt, 70's flare
Ricky, Elisa and Victorya - neon, cutouts, underwear as outerwear
Jack, Kit, Christian - zoot suit, pleather, fringe
Chris, Sweet P and Steve - shoulder pads, dancewear, baggy sweater
Kevin, Jillian and Rami won. Jack, Kit and Christian were in. These six designers are distinguishing themselves as the upper crust. Jillian has won twice already.
During the show Victorya railroaded Ricky. I thought Ricky was dead meat -- he didn't do well last week. But in the end it was Chris who was out for being a poor leader and for designing a jacket with shoulder pads that still looked trapped in the 80's.

I'm developing a fondness for these designers:

Christian, for being young and cocky. These happen to be the two qualities that made a poor first impression on me, but four weeks into the show and Christian's youth and self-assuredness are endearing.

Sweet P, for being older and plaintive. She's also been able to hold her own with her designs. I cheered for her when Donna Karan praised the dress she designed, an update of the baggy sweater.

Elisa, for being kooky and yet having integrity. Like Sweet P, she also emerged as a blameless member of this challenge's worst half. I'm intrigued by how accomplished she is pre-Project Runway and I expect her to kick ass.
Though I still don't have a favorite that I want to see win.
This episode was all about the conflict between Victorya and Ricky. There was enough going on between the two of them to overshadow all else.
My favorite quote:
"You never know, the judges might die over it. Or they might die because of it." - Christian on Team Ricky's and Team Chris's collections
Unfortunately Michael Kors didn't come up with a memorable quote this episode. I'm disappointed.