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Who got kicked off:
Andrea got kicked off, even though she had the home-court advantage of living in L.A., and getting to go and shop in L.A. for her items instead of only being limited to the Pacific Design center. She strived to make a less-gloomy room, and succeeded. She said she wanted to show the judges that “my work is warm and it comes from the heart and it’s a thing of beauty.”
And then the judges said "Ta."
Who Won: 
Matt, even though he stated that this was the room that he felt the least comfortable about. He disliked his carpenter this time around, and said that the "French doors look like crap."
Extreme Design Challenge: 
The designers were to look at 10 covers from Elle Décor magazine, and pick one that best suited their design style and use it as inspiration to create a completely different room. However, they were only to do this with a budget of $7,500 and figure out a way to do "luxury for less." They were allowed to use all of L.A. for their shopping playground.
Cat-fights:

So, it looks like they're getting along, but they both 'secretly' tell the cameras that they think the other one should go. In this scene, they're talking about Matt going, but that's not what they're really talking about. What they're really saying is "I want to take a wrecking-ball to your room right before the judges walk in." But they mean it with the utmost respect.
Our Sympathy Goes to:

Carl, for having to work with Carisa. Carl and Carisa fought over how he executed the "stone wall" by the fireplace, but it ended up being the part that the judges liked the most. Carisa rolled her eyes the whole time Carl was doing it, but she took full credit when the judges said they liked it.
We hope Carl spackles her in the next episode.