Finally, a good episode after god knows how many mind-numbing fillers.
Warning : Some spoilers may pop their heads out during this review.
Although it wasn't exactly a fighting based episode, it did advance the arc's storyline quite a bit, by tying it with konoha's history. It also puts the village in a bit of serious trouble, which brings in the whole genin batch instead of the usual 3-4 people groups that go on missions. Added is the fact that there is some big twist in the story, that'll leave everyone wondering what'll happen next.
This episode especially makes me look forward to the next one as it looks like Naruto will take on an advanced ninja (He'll be the first 'bingo book' character that naruto fights 1-on-1, I think), and we might even end up seeing the kyubi make an appearance soon. And to those people that stopped watching because of the really bad fillers, you should watch this story arc, it seems pretty interesting.