Lover's Walk - S3-E8
Trivia: In 'Lover's Walk' Cordelia falls through a staircase onto a rebar. This is taken from a real life incident; when Charisma Carpenter was young she impaled herself on a rebar too.
Lover's Walk - S3-E8
Trivia: The way Spike enters Sunndydale (driving into the sign) is a reference to the first time we met Spike in the season 2 episode "School Hard." Both times he drives into the sign, however in School Hard he steps out but in Lovers Walk he falls out, drunk. The music is even the same.
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.