Sookie is a fairy. We learned this right away on the episode, as Bill explained the legend that vampire wiped fairies out. That's why Claudine doesn't want Sookie hanging around Bill.
We also learned, via a conversation between Bill and Eric, that Sophie-Ann may have wanted Bill to get close to Sookie because fairy blood makes it possible for vampires to deal with sunlight. But Bill still insists he moved back to Bon Temps because his family is from there. By the end of the episode, Eric had kidnapped Sookie to give him leverage with Russell.
Also on the episode...
- Jesus and Lafeyette drank V together and had some weird dreams.
- Jessica and Hoyt got back together, much to Tommy's chagrin.
- Jason admitted to Tara that he killed Eggs.
- Arlene admitted to Terry that the baby isn't his. He reacted by saying he still wants to raise it.
- We got major flashbacks to Sam's past. They revealed he use to be a thief and he actually shot and killed the woman he worked with after she turned on him. It was an act of self-defense, but he then shot her lover in cold blood to make sure the crime was never revealed.