I Only Have Eyes For You - S2-E19
Continuity mistake: When Buffy is waiting in Principal Snyder's office, the 1955 year book slides off the bookshelf and lands open, but when Buffy walks over to pick it up, the book is closed.
I Only Have Eyes For You - S2-E19
Continuity mistake: When George shoots Mrs. Frank, her body falls off the balcony headfirst on a closeup shot. She flips in the air once on her way down. But in the following wide shot, she flips in the air on her way down again.
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.