Trivia: In "Where The Wild Things Are," Willow mentions that she used to have a crush on Giles. This is evident in "I Robot, You Jane." When Buffy and Willow are talking at Willow's locker about Willow's new online romance, there is a picture of Giles and Willow in a magnetic frame on the inside of the locker door.
Trivia: The demon's name is Moloch, a word found several times in the Hebrew Bible that is commonly associated with either a type of deity, or as a term referring to a type of sacrifice. The name was also chosen in part because in addition to its mythological connotations, it's also similar to the word "malloc," which is a function in C-based computing languages that has to do with allotting unused memory. The fact the term connected to both the mythological and technological made it fit perfectly.
Trivia: The lead monk at the beginning of the episode is named "Thelonious." This is a not-so-subtle nod to renowned jazz pianist Thelonious Monk.
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.