I agree with others here that the actress playing Bethany had a very flat effect. (According to IMDB, it was her first TV role, which makes me wonder if she knew someone on "Angel" to get the part.) Though I'm not sure a better actress could have saved an episode with such awkward, non-sequitur writing at times.
First, Cordelia thinks Bethany has a weird "vibe," when she has none at all, and then Wesley points out that such powers can be due to childhood trauma. Since when has that been true on this show or BtVS? It can be true that abused women act out sexually, but Bethany just acts wooden and strained when in Angel's bedroom. The subsequent scene with Cordy is just odd: no guest star has seemed less likely to be accused of trying to sleep with Angel. It would have worked better for Bethany to have some cynical, angry quality that would make her seem to fit with W&H, and thus dangerous, as Cordy said. Finally, her father would surely be aware of her power and fear her, but there's none of that in his performance, either. The whole thing seems off.
I have been wondering how Wesley became the senior employee, and Cordelia has to do the dusting. It's somewhat ironic that in this episode in particular, he belittles Cordy with sexist comments. And he can apparently talk back to Angel, while Cordy can't.
Not too much of Gunn, but I enjoyed his banter with Cordelia, and his 'axe' from the kids at his camp. He continues to develop layers.
I liked the mention of Cordelia's "Sunnydale education" including impaling, a reference to "Lovers Walk." And I wonder again why vampires never seem to bleed. Angel has no more than a dab on his bandage, despite being impaled.
If that was the gypsy girl, the scene seemed completely different from what was shown only last season. Maybe because it's a dream, so Angel's not remembering it as it happened? Otherwise, this vampiric dream/memory was more in line with his actual relationship with Darla.
I know Lilah becomes a major character, but so far she seems like the goof-up at W&H. Her peevish comments when Angel and Bethany are leaving, and her discussion with Holland, all make her seem rather hapless.
The action sequence was fun, with Angel jumping from the hood of his car to the van. And I liked his "detective" scene, which shows he can be smooth when he wants to be, even snatching up a coffee cup on the move. The "Mr. Bill" reference was from SNL and dated even then! (He was a little clay guy who always got squashed, just like the would-be rapists.)