
This episode's a tricky one to rate. I'll do my best to separate frustration toward characters from my assessment of the writing, though I can't promise one won't affect the other.
There's nothing overly complex about Kate's flashbacks or the island storyline. In both scenarios Kate manipulates people in order to get her hands on a prized possession — specifically, a toy airplane belonging to her former boyfriend. Kate and Sawyer treat the case like a football for most of the ep, with Sawyer trying in vain to bust it open.
Right from the get-go there are some head-scratchers. Kate explains that the Marshal wasn't permitted to bring the case on the flight and was required to check it. Soooo... yeah. How the heck did the case end up under another passenger's seat then? Note: they address this in an Exodus flashback, but even that retcon is a little suspect.
There are other minor bits in the dialogue that irritate me as well. When Jack and Kate unearth the dead Marshal, Jack asks Kate if she's alright. She responds, "Compared to what?" What a strange answer. Who answers "are you alright?" with that?
In a flashback, after Kate shoots her accomplices they swear to get revenge on her. "My name's not Maggie," is her response, which is just as irritating now as it was when she said "My name's not Annie" in Tabula Rasa. I guess Kate feels overwhelming guilt over her aliases (but not shooting people or incessant lying), so she admits her little secret at the most awkward possible time.
There's also a serious credibility issue with flashback Kate pulling off a robbery simply to obtain a sentimental item. It seems a stretch that even Kate would be crazy enough to put so many people in jeopardy over that. It's also hard to believe there weren't a number of more peaceful options to achieve the same goal.

Evangeline Lilly does her usual fine work despite the material she was given this time around. Here again I must separate my feelings toward Kate in this episode versus my assessment of Lilly's performance. If I was frustrated and angry with Kate, that means Lilly sold it quite well and should be commended.
Josh Holloway provided some much-needed comic relief, particularly in his failed attempts to open the case.
Bonus points to Matthew Fox for being credibly (and understandably) frustrated with Kate. I got a chuckle out of him shaking his head repeatedly after she broke down crying. God knows I was.
Deductions for just about everybody in the bank in the flashbacks, not a single impressive acting performance among them.

There's not a whole lot to discuss in terms of directing and visuals, but I will acknowledge two positives:
1) The opening scene with Kate and Sawyer swimming in the waterfall pool. I'm a sucker for underwater scenes of any sort and appreciate the technical challenges of pulling it off.
2) The quick-cut sequences of Sawyer trying to bust open the case. You don't see that very often in LOST but it was effectively used here.

You'd have to be a serious Kate sympathizer to see a lot of replay value in this episode. Most episodes in Season 1 have a variety of things happening on the island with other characters, a way to break up the main storyline. But in this case (pun intended), the focus is on Kate's pursuit of the case for 95% of the episode.

Okay, THIS is the category where I'm allowed to be emotionally biased. As far as I'm concerned this episode should be entitled "Whatever the Head Case May Be", with the head case being Maggie, Annie, Kate, whatever you want to call her.
When characters make boneheaded mistakes or have bouts of selfishness, I can accept it. But when characters manipulate and backstab people who are trying to help them, I hold a serious grudge. Jack did absolutely nothing but try to support Kate at every stage of the season so far, so what does she do? For starters, she flat-out lies to him about what's in the case and tries to pretend he's crazy for suspecting otherwise. Worse yet, she manipulates him into digging the Marshal out of his grave, only to try to pull a fast one by snatching up the key.
If I'd been in Jack's situation there is no way I ever would've been able to trust her again.
Emotional aspects aside, there's another element of the episode that I found strange. I'd be the first to say Michael Giacchino is an absolute genius, but in this case the music doesn't do the episode any favors. There's a tune that plays when Kate and Sawyer find the waterfall and whenever the case changes hands. It's a light, fluffy tune that almost sounds like it belongs in a Pixar film. It didn't work for me.