The Enterprise is visiting a planet with active Terrorists, when there's an explosion. Crusher tries to treat the wounded, despite Worf, Data, and a local advising her it's not save to stay. Then Picard contacts Crusher and tells her she should leave too. Why not beam them to sick bay? Then a Terrorist teleports in and kidnaps Crusher. Everyone readies their best "I told you sos" for when they get her back. Perhaps next time she'll listen...
The command crew review the situation and determine they can't short circuit the plot by beaming Crusher out because her communicator is shielded.
Crusher tells her captor nothing.
Picard meets with Alexana, head of the police who admits they're pretty useless against the Terrorists. They have some of the teleport devices recovered from dead Terrorists, but haven't been able to make head or tail of them. Picard takes one of the devices for study, but refuses to supply any better weapons, because... Umm... Well, the Prime Directive surely doesn't apply, or they wouldn't have beamed down in the first place. Probably because Picard just felt like being a dick then.
Crusher's captor, Finn, asks her why the federation is supplying the other side with medical supplies. "People were hurt." "I know; I hurt them." Finn takes Crusher to see some of the injured Terrorists. She asks she be allowed to contact her ship to get medical supplies, but Finn provides her with Federation medical supplies nicked from the authorities. He admits that the damage is caused by their teleport devices which uses a dimensional shift.
Meanwhile, Wesley works out the teleports work using a dimensional shift, because an Android and Star Fleet's best engineer are actually pretty bloody useless compared to the glory that is Wesley Crusher.
Alexana and Riker watch the police arresting children because they are Terrorists.
Crusher watches Finn drawing hands, and Finn compares himself to George Washington. Crusher scoffs, but he argues he's no different than, say, the US nuking Japan.
Alexana questions a Terrorist, but doesn't have any lucky. Riker becomes uncomfortable and tells them to release the prisoner, whereupon Alexana gives a speech about how she'd really like to live without wondering if she's going to be killed by Terrorists.
Data, meanwhile, has been researching and found that Terrorism is actually an effective way of getting your way. Picard says he doesn't quite understand the issues involved, but doesn't elaborate.
Finn complains about the mass arrests. Crusher suggests as a solution to the dimensional shift damage, they could, you know STOP USING THEM. Finn disagrees, and says they plan to destroy the Enterprise because they've allied themselves with the local authorities.
Terrorists start beaming on board the ship and shooting people, then set bombs on the warp core and disappear. They can't get a lock on the explosive to beam it off, so Geordi removes it, sticks his com badge on and has it transported off the ship.
More Terrorists beam onto the bridge, and shoot Worf (because he's the most useless security officer ever) and teleport back off with Picard.
So, to sum up: Crusher and Picard captured, Worf possibly fatally injured, and Wesley Crusher's the only one who's actually made any positive contribution to the plot so far.
Riker brings Alexana on board, and Troi says Worf's not critical and is receiving treatment. WESLEY says he's worked out a way to track the Terrorists' teleport devices. Fire Data and make that boy science officer.
Picard tells Crusher about how her son is so much better than the rest of his bridge officers
Finn teleports up to the Enterprise and gives his demands to Troi. Unfortunately for Finn, Wesley's tracking system is then able to pinpoint the Terrorist base. Riker prepares a team to go down and extract the hostages.
Crusher bitches at Finn for using fear as a weapon, but then he shows her the sketches he's done of her, and that changes everything, apparently. He draws Crusher! He can't be evil! She visits Picard and shows him Finn's sketchbook.
Riker's strike force attacks the terrorist base, and Alexana interrupts Finn about to shoot Picard. Fortunately she shoots first. Then a young child terrorist turns up and points a gun at them, but lowers it when Crusher says "No more killing." Riker thinks this is promising.
In summary, the Terrorists win when the good guys are pig thick (except Wesley).