The Gathering Original pilot, introduces the idea of a "Hole in Sinclair's Mind", so if one starts with that, that's floating in their mind until this episode confirms he does have one.
The images with Talia, Kosh and The VCR did have a purpose, but, unfortunately this was one thing that didn't actually play out. We can tell you what was up once you get to the end of S2.
One Day I hope to be the Man my Cat thinks I am
Where are we going? And why are we in this Handbasket?