Welcome To The Hellmouth (1) - S1-E1
Plot hole: There was no need for the master wait 60 years for the night of the Harvest, when all he had to do was have his minions kidnap and gather a bunch of humans and bring them down to where he is so he could feed on them himself and escape 60 years earlier.
Plot hole: In "I Robot, You Jane", how exactly does Willow scan Moloch out of his book when the scan is only about two thirds the width of it? (00:04:25)
Plot hole: Angel says he cannot give Buffy mouth-to-mouth because vampires have "no breath." However, throughout the entire series, vampires are shown to breathe, and are able to do things like smoke, gasp, get choked out, etc. (Granted, the franchise also confirms a vampire cannot die from asphyxiation, but still they're shown to breathe regularly).
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.