This episode works on every level for me. Oz has the horrible discovery that he's a werewolf, and it's a genuine surprise to the rest of us too. The fake out with Larry is wonderful, I just love his speech to Xander in the change room.
Buffy is clearly still cut up by Angel, but is able to (or the writers were able to) put it aside long enough to get on with the job. Saves us all dying of boredom, which is a real danger when characters rant and wail endlessly.
The werewolf costume still looks great, so many years later. I guess we've reached the pinnacle in dog suit technology (furry joke not intended). The Oz-wolf morph is also worth a mention, although the tech used is obvious, it's convincing.
"Welcome to the mystery that is men. I think it goes something like, they grow body hair, they lose all ability to tell you what they really want."
One of the things I love about Buffy is the constant self-referential and in-jokes. This episode opens with Oz looking at the cheerleading trophy that has Amy's mum, the witch, trapped inside it - her eyes follow you where ever you go. There's also a really cool foreshadowing moment for the rewatcher when Oz defends Willow to the bullies by saying she is an evil mastermind. Uh-huh. If only you knew.
This is an okay episode that brings Oz into Buffy's circle in his own right. I like how nonchalantly he finds out and deals with being a werewolf - almost but not quite like it's not a big deal.