About the only thing of consequence in this episode, I felt, is that we found out Libby was in the psychiatric hospital with Hurley. A future problem this could cause might be Hurley finding out and again thinking that the island and everything happening to him is in his head.
It will be interesting to find out if Libby was cured like Hurley was, or if she broke out and is still having mental problems. The latter will make for more interesting plotlines, I imagine.
-Tamerlain