Sydney was just afraid in getting hurt again, that's very understandable. That doesn't make her the bad guy in this story, that makes her human.
All she needs is time to heal her wound and insecurities. I'm sure in no time Vaughn will prove to her that they belong together.
It's sooo nice that Michael could spend some time with his daughters. But I wonder what Sydney told Will about her complicated relationship with Michael.
This is really frustrating!! I understand Sydney's doubt about Vaughn, he cheated on her after all. But at least she's letting Vaughn to get to know the girls. I hope in the process she can forgive him, and let them all be family again.
Wow... I'm trembling already, that was a hell of a chapter!
About PM, I haven't got that in a very long time anyway (I know it's not your fault, but the boards), so it doesn't really matter to me. I can always look for the chapter.