Oz escapes from his cage and wakes up next to Veruca, a singer in another band.  Evidently she is a werewolf also but one who has given in to her animalistic nature.  When Oz tries to protect her and others by getting her in his cage, Willow sees them together.  Veruca tries to take Willow out of  the picture but Oz kills her in his wolf form.  He is held back by Buffy just before harming Willow.  Oz leaves town because he is afraid of what he'll do to those he loves.