Never Kill A Boy On The First Date - S1-E5
Deliberate mistake: When Buffy and Giles are searching the funeral home, we see three shots of Buffy and Giles opening up different mortuary-cabinet doors, shot from the point of view of the cabinet. The problem? You can tell they're opening and closing the same door over and over again. The background is exactly the same, and all they've done is slightly re-arrange the stuff behind them, and had the actors come in from different angles to create the illusion they're opening different doors. It's SUPER obvious.
Chosen answer: Angel is saying that he is still jealous and Buffy recognizes that this is his way of saying he wishes that they could be together. That is why they both smile.