The twenty finalists are flown to Toronto and have to interview either Yellowcard or Our Lady Peace. Based on their performance the judging panel sends ten finalists home.
The finalists move into a penthouse suite in downtown Toronto. They host MuchOnDemand, attend a huge press party and are introduced with their new theme song. Norm "The Big Norm Show" is voted off.
The finalists prepare a short video for Star Daily and the Academy Awards. Nathalie Morgan is voted off and the audience is introduced to The Looser Loft for the first time.
The remaining seven are flown off to Edmonton to cover the first anniversary concert of 91.7 the Bounce and provide a story. They were split into two groups: 4 guys vs 3 girls. Rebecca Stacey was voted off for failing as a group leader.
The final three work on a music video for Lindsay Robbins. No one is voted off but the contestants find out that someone from the looser loft is coming back.