Fringe/Recap/S02/E12

Season 2, Episode 11:

Johari Window
When horribly-deformed people start showing up in the small town of Edina, NY, the Fringe team goes there to investigate. They work out that the people in the town have been affected by a military experiment conducted there decades ago, and that a machine in the village is altering everyone's perceptions so that the people look normal. In the end, the Fringe team decides to keep the town's secret and leave them in peace, knowing that they will be in danger from both the government and the outside public generally if their deformities are revealed.