Pacey is in some problems. Apparently he has failed ( and this is very good of him ) 3 classes last year. He did manage to pass to the next class ( but I don't really know how that works in America ) and now he has a huge chance that he won't graduate. They worked this storyline out in a fine way but they did made it a little too dramatic.
Pacey has had some problems before, and by all means: when you screw up this bad it's your own fault! Too bad for him, but perhaps he should've worked a little harder last year. He's just so easily distracted. He always needs someone to get him back on the right track. It's a problem for him. Probably even a bigger problem than the fact that he won't graduate. There will be a day when he's on his own, and then he needs to survive. And no one will support him.
Joey is absolutely crazy about little old Pacey. I just love seeing those two together. Pacey's speech was great too. Her job was ok to see, but not that interesting. I did like Drue though. He has some great eyes... (L) ;)
I think Pacey can be happy with a 'friend' like Dawson. I think the way Dawson overreacted to Joey/Pacey was just wrong, really. She wasn't his and I get that he's mad the way he found out, but the way he's dealing with it is just weird. But that fact is: he's really mad at that guy. And still he manages to go to Joey to ask for help. He cares about Pacey. Which is good 'cause they're really old friends. I hope we might see those two talking again.
As to a side story: Jen got dumped by Henry. Henry was weird, ugly, a stalker, and did I mention weird??? She deserves better than such a freak.
One note: I know people who had to do their class over, and none of them liked it, but also none of them reacted like this. It could be me, but I just thought it was a little overdramatic. I didn't really mind though :)