A MUCH better description below:
Episode 12 "Better Angels"
Episode begins with Dale's funeral. Rick makes a speech, intercut with Andrea, Daryl, Shane and T-Dog killing some random walkers in a field. Funeral ends with Rick saying that the group has to set aside their differences and pull together in honor of Dale. Cue theme music.
Hershel finally allows everybody to move into the house. Rick decides to let Randall loose instead of killing him, just like they had originally planned. Shane gets all mad at the idea, but Rick says it's his decision and Shane needs to shut up. Later, Carl reveals to Shane that he done fucked up and stole Daryl's gun as well as released that walker from the swamp, but asks him not to tell anyone. While Shane is building a lookout platform, Lori comes to talk to him. She thanks him for everything he had done (saving them from Atlanta, etc.) and says she's truly sorry for all the crap that happened between them.
Shane asks Rick that he and Daryl be allowed to go dump Randall, but Rick refuses. Shane then tells Rick about what Carl did and gives him Daryl's gun. Rick has a talk with his son and basically tells him to grow up. Meanwhile, Shane sneaks into the shed and releases Randall. They secretly leave the farm and take off into the woods together. Shane tells the kid that he wants to join their group and asks Randall where it is. He tells Shane that they have a camp on a highway five miles away. Shane then proceeds to snap his neck.
The group discovers that Randall is gone and gets all panicked. Suddenly, a bloody Shane appears. He says that Randall knocked him out and escaped (he actually smashed his head into a tree after killing Randall) and that he tried to run after him. Two pairs head out to look for Randall: Glenn & Daryl and Rick & Shane. Daryl uses his epic tracking skills to deduce that Randall and Shane actually walked together and had a scuffle near the tree with Shane's blood on it. Then, a zombie-Randall appears. Daryl misses with his crossbow, there's a fight, Glenn takes out Randall. Daryl uses his epic Sherlock skills to deduce that Randall was killed by a broken neck and zombified in spite of having no bite marks.
Shane and Rick meanwhile arrive on a field. Rick tells Shane that he knows Shane plans to kill him there. Shane plans to pin the murder on Randall and says he's better for Lori and that Rick has no idea how to fix the situation. Shane wants Rick to raise his gun so he wouldn't have to kill an unarmed man. Rick talks him out of the murder, telling him that there's still a way out of it. As Shane is lowering his gun, Rick stabs him in the chest, killing him. Carl appears, having left the farm looking for them, and sees Shane rising from the dead while Rick's back is turned. He shoots Shane in the head, attracting a nearby group of walkers. Rick and Carl stand over Shane's corpse, oblivious to the huge horde of walkers approaching the farm from the woods. End episode.