Continuity mistake: When Willow is interrogating Jonathan, she makes a comment about how he resented being pushed around. In the first shot, she's facing him. It then cuts to the opposite angle, and she's facing sideways. Then, in the very next shot, she suddenly turns 180 degrees between cuts after walking by him.
Continuity mistake: When Buffy, Willow, and Cordy are talking at the swim meet (after Gage waves at Buffy), the way Buffy is holding her hands changes back and forth between two positions as it cuts between her and Cordy. Seems two different takes were used, and she had her hands in slightly different positions in them.
Continuity mistake: When Angelus is spitting out Gage's blood, he goes from straight up to leaned over between cuts.
Continuity mistake: After Willow says that the student was killed by being opened up like an Oreo "except without the chocolaty cookie goodness," Buffy's hands go from together to apart instantly between cuts. She then puts her hands back together only for them to be apart again in the next shot.
Continuity mistake: When Buffy is talking to Cameron in his car near the start, the amount of light on Cameron's face coming through the windshield changes between cuts a few times. Sometimes the top is up over his eyes, sometimes it's down by his nose, etc. Also, depending on the angle, sometimes there's a purple glow on his face and sometimes not.
Continuity mistake: When Buffy and the guy are talking at the beach in the beginning, right before they hear a voice scream "Somebody help me!", the guy starts to turn to look at the tide. However, in the next shot, he's instantly facing Buffy again and then turns to face the tide a second time.
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.