Hrm, this ep was sortof confusing. It definitely seems aimed at people already familiar with the story. Based upon guesses: it seems like if haruhi is unhappy the world will be destroyed. Nagato seems to be some magical being assigned to watching over her. Kyon is just some guy haruhi has taken a liking to. I still dont know mikuru or ituki's stories yet. I somehow get the feeling mikuru likes kyon too.
About the "incident" between haruhi and kyon: when ituki asked him to use the same technique that got him back into normal space... I bet he had to do something ichaicha with her... just a guess.
anyway, fun to watch, but the show is so scattershot and confusing.
