. >> the newest suspect arrested was katherine carpenter -- >> reporter: billy clayton had been on there discussing nancy's memorial service. >> and i think i was supposed to get something for her to wear to the memorial. >> reporter: and now, she was behind bars. seemed crazy, but in a town that could barely believe one of its own had been murdered, anything seemed possible now. >> i should've been surprised or shocked or something. but at that moment i just -- i was like, you know, who knows? any -- anything could happen. i just -- it didn't make any sense at all why anyone would kill her. >> reporter: and so as billy and the others went on finalizing memorial plans, kathy, a bit late, got a lawyer. greg greer. >> this has been one of the more frightening experiences of my career to represent a person who is so totally and completely innocent. >> reporter: as greer and the lawyers representing the stylers' waded through the evidence, trying to sort out who did what, it became pretty clear, to them at least, that the truth about what happened in that bedroom on buttermilk mountain, wa