What a great discussion..thank you all for giving feedback...I think I am going to enjoy this forum.
As for me, I judge episodes based upon a number of things, including story, type of alien, believability, and use of the core characters. With that in mind, I think the best episodes in Season 1 of TNG are (not in any particular order):
Encounter at Farpoint - This was a very nice introduction to the crew of the Enterprise-D which was also had a strong ethical dilemma as its backdrop. I will agree that when you see later episodes (after the characters have matured), some of the dialogue seems a bit silly; however, overall, I didn't find any glaring problems with the episode. A good first attempt to introduce us to TNG.
Datalore - In my opinion, this was best episode of the season. It allows us to learn some of the backstory of Data, and provides an action-packed and intriguing (no pun intended) story which showcases the talents of Brent Spiner. The only gripe I have with this is why it took so long for anyone in the Federation to go to Omicron Theta and find out the story of Data - given his already long tenure in Starfleet, wouldn't you have expected someone to have visited the planet already? It seems a bit of a coincidence that the visit would finally occur on the Enterprise-D that this would occur, but I guess you have to excuse this because it's a new show.
11001001 - This was just a really neat episode with some quirky aliens. It allows us to experience a Starbase, and some of the non-space drama that is TNG. The Binars could have been a bit more developed (and with better voices), but all in all, an enjoyable ride.
Home Soil - This is also one of the top episodes of the season. Very interesting concept that a inorganic life form could do what it does, and how humanity responds. My only gripe with this one is the voice of the alien (too sharp and robotic - but I guess that's the point) and calling the humans 'bags of water'? Really...the could have done better than that.
Heart of Glory - A very interesting introduction to the Klingons of TNG. There are so many good things about this episode - Worf's part in it; seeing the death ritual of the Klingons; appreciating the 'peaceful' relationship between Klingons and Humans; and the ultimate ending that took place. And the music in this episode is haunting.
Symbiosis - OK, now I know many have panned this episode, but I really like it. It has a very simple premise, has interesting aliens, and thoroughly explores both sides of the issue at hand (drug abuse) well. I particularly how heartless and cold Sobi and Langor are portrayed. And the ending is very neat as well.
We'll Always Have Paris - This is one of those episodes in which there are two intertwined stories (the Mannheim effect and Picard's former love interest) and it actually works. There are so many episodes in where there are more than one story and one of them turns out to be so lackluster as to not have been necessary (example - Lonely Among Us). But this one does it beautifully, with an interesting plot, beautiful music, and a stunningly beautiful guest star, Michelle Phillips. This one is just a joy to watch.
Conspiracy - The premise of this story is fascinating, but it is too underdeveloped. This one makes my list because of the 'could have been' factor. Because of that, I've watched it again and again. One major issue is that the aliens look so fake, it is unbelievable.
Now there are quite a few episodes which were pretty bad, but let me comment on a few:
The Naked Now - Lack of originality. They could really have tied this one better into ST:TOS. It was a missed opportunity.
Lonely Among Us - See above.
The Neutral Zone - The first time the Federation interacts with the Romulans in years and they take up such a small part of the story? What a waste!!
The rest lie somewhere in the middle along the continuum (again, no pun intended).