Now THAT was a great episode. First one in years, actually. Advanced the story, gave up a secret or two, reconnected with the mysticism (how is the one guy connected? what's Miles' crazy ghost story?). They even mentioned the monster! I think that was basicly a placeholder, sort of an early "we'll-get-to-it!" promise that they're going to loop back for some of the Season 1 stuff.
Also, UNC's basketball team is just terrible. I know they didn't have Lawson, but there's Hansbrough, and nobody else can play! Nobody can make a shot, nobody can play at all, nobody can run a screen and nobody can drive and dish. Other than that, Coach Williams really had them ready.