This episode showed a little more of the Afro Samurai's past and explained the question I really wanted an answer to. It explains exactly how Afro began his training and how he managed to survive to his present age. He finds himself alone and in quite some trouble due to wrapping the #2 headband around his waist for everyone to see. The young, and severely inexperienced, samurai is chased down by bandits and attempts to protect the headband by force. After refusing to give it up, he winds up "biting off more than he can chew". Utsuru and Jinno, the orphans that find him, have they're martial arts master take him in to let his body heal.
Once he is better, he jumps right into his sword training and shows much prowess in the art of death. Almost immediately after he starts his training, he showcases his inherited knack for killing. Young Afro gets his first real lesson in killing when he attempts to get some information on the man who has taken the #2 headband. The man he attacks doesn't actually get killed by Afro but instead shoots himself. The man's brother and his friends go after the boy for revenge only to find that he's not so helpless. He makes almost easy work of the would-be attackers until his friends distract him and do more harm than good. Afro kills the last avenger and officially marks his entrance to the world of killing.
This episode also shows some erotic activities on the part of Afro and Okiku, but I think I've said enough already.