I enjoyed this episode because for the first time, no one felt like they were overacting and the main characters all worked together very smoothly. This is the first episode where I'm seeing chemistry between everyone from Torres to Billy to Zoe. As much as we can expect from escapist fun like KR, this ep really did have some great character moments. Mike's look as Sarah and Billy showed up at the door is priceless, and his frustration towards the end when he discovers yet another ex-soldier recognizes him made me sad for him.
The KITT getting "blown over the side" thing could have been done smoother, but I actually get why the shot was done that way. It's all about creative license. I can think of a couple different ways the scene could have been shot, but they all add to the show's run time and would have cost more in VFX budget.
I think there needs to be some type of VFX when KITT gets shot (such as the sparks in the old show). Even another nano/heal shot (can the basic wireframes from the 2 hr movie be reused?). Some indication of KITT either abosrbing hits or deflecting hits would be helpful as we had last week with the windshield shots.
I really did enjoy the sub-car thing. It did remind me of James Bond (in fact, most of that sequence did) including the car coming onto the beach.