I watched this today because I'm on an s2 kick... which isn't very uncommon for me. I also needed a break after back to back History and Chemistry exams.
I like this episode a lot. I find it really emotional and therefore really good. In Buffy, the emotional ones and the funny ones are the ones that get to me most, I think. I just really liked how Buffy and Angel were almost forced to deal with their problems in this mystical way which is really interesting especially because Angel is still Angelus and he took the role of Grace and Buffy was James.
I always like at the end when Buffy talks about why James chose her instead of Angel, why she was the only one affected by their love story who was a girl yet was possessed by the guy. She guessed he could relate to her, and that made the Buffy/Angel conflicts so much deeper, I think, and maybe less supernatural and more natural because these two love stories were so similar.
One last thing that I like is that at first, it just seems like another one-episode arch, another small mystery for Buffy to solve. But it isn't. She becomes involved in it, captured by it, and is able to explore her own emotions through it. I think that makes it unique from some of the others.
Also, Buffy/Angel = love. I don't care if it was forced. XD