After using the Tranquility Lounger you will be put into a computer simulation. You will talk with a little girl named Betty who will force you to do bad things around town, ultimately ending in your killing everyone. This course will obviously lead to quite a bit of bad karma.
Instead, you can go into the Abandoned House and interact with the objects in the front room to initiate the Chinese failsafe. Use this order: Radio, Glass Pitcher, Gnome, Glass Pitcher, Cinder Block, Gnome, Bottle. This will lead to good karma.
Once you have done either method, talk with Betty again for an exit door to appear. Use the door and speak with your father outside the simuation.
See Tranquility Lane for more specific info.