Yeah, it was the finale of Season 1. Everything kind of built up to it.
He doesn't crap him out, he is surgically removed after doctors first believe him to be a benign tumor. He then hijacks the X1 and builds a makeshift body out of parts from the Venture compound to murder Rusty.
Brock saves the day in a hysterical parody of every action movie ever, and both negotiate the terms of restitution Rusty owes him for trying to kill him in the womb.
The show is almost a serialized drama, that's like complaining you can't follow Lost or Fringe or The Sopranos.
Also, all the seasons are available on DVD!