Continuity mistake: When Melinda's hair is caught in the garbage disposal, she reaches for the switch and it is in the down position. When it switches back to her and then back to the switch, it is now in the up position.
Character mistake: Jim says that the last man executed in the USA by hanging was Billy Bailey on September 25, 1996. This is not correct. It was actually on January 25, 1996.
Answer: This "spirit" appears in several episodes throughout the rest of the season including the season finale. He's a "bad spirit" that is intent on keeping souls trapped on Earth. With the death of Andrea (her business partner) he wanted to make a deal with Melinda, to give him HER soul to release everyone else including Andrea to cross over.
Boobra