In this chapter, Madison Paige makes her way to the Blue Lagoon in an attempt to interrogate Paco Mendez about the apartment he rented from Adrian Baker, hoping to find out who rented the location of the Lizard Trial.
Madison arrives at the Blue Lagoon and finds Paco, but a bouncer tells her that he doesn't want to be disturbed. She manages to get his attention by making herself look sexier and dancing near his table. He invites her upstairs to his office, takes her purse, and forces her to do a striptease for him at gunpoint. After knocking Paco out, tying him to a chair, and using some high-pressure interrogation techniques, Madison learns the name of the person who rented the Marble Street apartment.
- Main article: /Walkthrough
- Pride Saved – Take off no more than one item of clothing during the strip tease.
- If you look at Madison during the dance scene, she's wearing navy or dark blue underwear, but during the striptease, it is revealed that the underwear also sports a yellow or lime green trim.
- If Madison was injured by electric tools in "The Doc," you can see her wounds during the striptease.
- You don't have to apply lipstick or muss Madison's hair to get Paco's attention.
- This chapter will be skipped if Madison is killed in "The Doc," and it will show the intro for "Fish Tank" instead (if Norman Jayden survived the fight with Mad Jack).
- This is the third scene in the game that potentially involves nudity; Madison can be undressed to the point that she removes her bra, showing her breasts. She cannot be made to remove her underwear.
- The dancing girl who gets invited to Paco's table is the same girl who makes out with another girl in front of Gordi Kramer in "Kramer's Party." She is also one of the people whose face is shown up close during the opening credits.
- A glitch can occur that causes Madison to be able to shake her hair twice, but not be able to put on her eyeliner, forcing the player to go back to the main menu.
- Another glitch can occur that causes Madison to twitch into her normal model form, with no facial expression or arm movement.
- Madison's thoughts refer to Adrian Baker as "Doctor Death" whether or not she was taken to his basement in her previous chapter.
Chapters played as Ethan (in chronological order) - Prologue | The Mall | Father and Son | The Shrink | The Park | Where's Shaun? | Paparazzi | Lexington Station | The Motel | The Bear | The Butterfly | The Lizard | Fugitive | The Shark | On the Loose | The Rat | The Old Warehouse
Chapters played as Scott (in chronological order) - Sleazy Place | Hassan's Shop | Suicide Baby | A Visitor | Kramer's Party | The Golf Club | Manfred | Eureka | The Cemetery | Flowers on the Grave | Trapped | Face to Face | Hold My Hand | Origami Killer
Chapters played as Norman (in chronological order) - Crime Scene | Welcome, Norman | Kick Off Meeting | Nathaniel | Covered Market | Shrink and Punches | Jayden Blues | Under Arrest | Mad Jack | Fish Tank | Solving the Puzzle | The Old Warehouse