We've seen that John's face in the hospital became diseased when Jasmine made skin-to-skin contact with him. In this episode many humans touch Jasmine directly, especially Angel Investigations when holding hands with her in the circle to locate Fred, but no one develops any boils or swelling from those moments.
Neither Fred nor Angel were immediately disillusioned by blood to blood contact: each had to look at Jasmine and see her 'true form' before they stopped worshiping her. The others (Lorne, Wesley and Gunn) do not seem to have needed the second step and they clearly expect Connor to realize the truth a few seconds after Cordelia's blood is smeared with his own. This seems inconsistent.
Edit: Both Fred and Angel were exposed to Jasmine's blood, which broke the spell. While Lorne, Wesley, Gunn, and Connor were exposed to Cordelia's blood. It could be that Cordelia's blood breaks the spell in a different way.
Jasmine apparently lives in room 619, but every exterior shot of the Hyperion shows only five floors.
While in the cave, Fred tells then creature she is "new to the whole fugitive thing" but she isn't, she was a fugitive for 5 years in Pylea.
On the shot where we see Lorne has stopped believing in Jasmine, he lifts his right wrist up for the alcohol and nothing is there. Then in the next shot when Wesley notices Lorne's right wrist, there's a bandage that magically appeared there.
When the camera angle is over Fred's shoulder as she has the small demon pinned down, she's holding the hatchet differently in the next shot (a close on her face). In the latter shot, she has it turned at a bit different angle and has a grip closer to the top.
When Connor walks away from the group in the final scene, the cut he received on his chest seems to have disappeared entirely.
Fred: I've been so alone...and scared. I'm not like you. Not a champion.
Angel: Everything I see says different.
Demon: You scared the cream cheese out of me!
Demon: (to Fred) I feel warm. (sighs) Wait. No I don't! That's just me wetting myself because you wouldn't let me pee! Thanks for nothing!
Lorne: I can't believe little ole Fred managed to sway Angel back to the dark side.
Gunn: Evil, not evil, evil again - I wish he'd make up his mind.
Ted: Not a huge demand for serial killer autopsies when you're living in a utopian wonderland. You know what I mean?
Lorne: I thought Our Lady of the Perpetual Seabreeze was the real deal 'till the divine Ms. J. walked right through that door and into my ass...which is where my heart is physiologically. (guy stares) I can show you an x-ray.
Fred: So, you don't worry that it's possible for someone to send out a biological or electronic trigger that effectively overrides your own sense of ideals and values and replaces them with an alternative coercive agenda that reduces you to little more than a mindless meat puppet?
Ted: Wow. People used to think that I was paranoid. I mean don't get me wrong. I still got the implants in my head. The CIA is still listening in, it just doesn't bother me anymore. Instead, I-I beam Jasmine's love up to their satellite, you know, share the love with those M.K - Ultra bastards.
Fred: That'll teach 'em.
Connor: Why would anybody reject love?
Gunn: (glaring at Fred) Maybe 'cause she has a history of doin' that?
Deaf Woman: (signing) I wish I could be in Fred's skull so I could explode her brain and kill her for rejecting Jasmine.
Fred: I'm so sorry.
Jasmine: It's okay. I forgive you.
Fred: No. I'm talking to Angel. I hope he can forgive me.
Connor: Where are those people?
Jasmine: I ate them.
Ted: (after he set fire to his store) Do you want me to stay here?
Connor: I'll kill you!
Angel: It'll pass.
Lorne: Yeah, right, 'cause Lord knows he's never tried that before.
Fred: You live here?
Demon: Do you live in a dirt hole?
Demon: Do you WANT to live in a dirt hole?
Demon: Then why the hell do you think I live in a dirt hole?
Wesley: I'll get him. I've kidnapped him before.
Little Kid: I love Jasmine because she makes food taste good.
Connor: You ruin everything!
Cat lady: I have 37 cats, and I've just changed all their names to Jasmine.
Demon: (holding up a human hand) Finger food?
Fred: Oh... happy day.
Lorne: Tonight the role of Judas Iscariot will be played by Krevlornswath of the Deathwok Clan.
Injoke: The hotel that Fred is staying at is the same one used by the main character in the movie Memento.
In the previews for this episode, the WB completely misled the audience by playing it up like the kiss between Angel and Fred was something serious and not just a ploy to avoid attention.
Music from the blissful opening scene is "Wouldn't It Be Nice" by The Beach Boys.
Title: The Magic Bullet
In addition to the book store in the episode, and the bullet which pierces Jasmine and then Angel, the title also refers to The Magic Bullet Theory, which originated in the 1920's and 1930's and proposed that as an audience, we were all passive and equally susceptible to media messages. The media were thought to have the ability to shape public opinion and persuade the masses toward nearly any point of view desired by the author of that particular text. In this case Jasmine sort of acts as "author" shaping and persuading society. The Magic Bullet Theory is also the moniker given to the government-approved explanation of how JFK was assassinated. It is so-called because in order for one bullet to inflict all the injuries it supposedly did, the bullet would have had to change direction mid-air several times. The theory is widely believed to be a cover-up. The mystery surrounding JFK's death is also referenced in the next episode, "Sacrifice".
Lorne: This is The Greatest Story Ever Told.
When Lorne finds out that Jasmine likes movies, he says that this is the greatest story ever told. This is a reference to the 1965 film by that name, which was a telling of the life of Jesus. This draws a direct allusion between the story of Jasmine and one possible vision of the gospel narrative.
Gunn: That's some gift you got there, Kreskin.
Kreskin - often referred to as "The Amazing Kreskin" - is an entertaining "mentalist" who had two shows during the 70's displaying his abilities. He still makes predictions and public appearances to this day.
Lorne: You know what they say about people who need people.
Connor: They're the luckiest people in the world.
Reference to the famous Barbara Streisand song "People" of whom Lorne is no doubt a fan.
Jasmine: I sound like the prologue to one of those movies about dwarf people...
This is a reference to the Lord of the Rings (LOTR) movies, in particular The Fellowship of the Ring in which Galadriel, Queen of the Elves, talks during a lengthy prologue about the history of Middle Earth, the world in which the LOTR saga takes place. Hobbits are small, dwarf-like people (they are not dwarves themselves, though) that usually dwell in clean, hole-like homes.
Fred: Invasion of the bodysnatchers...
The opening sequence with Fred pressed up against a car window and a view from the driver appears to be a homage to the movie Invasion of Body Snatchers - both versions use a similar scene with a similar theme of one person on the run from massive mindless conformity.