Continuity mistake: When Buffy, Dawn and Joyce say goodbye to Doctor Kriegel after being given Joyce's medication, the position of Dawn's hair changes between shots.
Continuity mistake: In the end of the scene where they find the dead mental patient killed by the meteor alien, the group walk away from The Body leaving Riley still there, but Anya's coat can be seen in the bottom left corner after she had walked away.
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.