The last couple of episodes in terms of quality have got better and better, where as I didn't enjoy this as much as last episode they are pretty close in quality. The reason for this is an increased focus on the world of Reaper and it's characters and less importance on the escaped soul of the week. It took it's time but it has finally found its feet.
Once again the escaped soul adds to the texture of what's going on in this episode, he's very rarely seen (i.e. Invisible). Also, Sam can't shake the feeling that Cady IS the devil's daughter and avoids contact with her, it's all about perception as is the introduction of the two new gay characters, Steve and Tony. As soon as you see the power sanders you know something is odd about them, the reality isn't shocking but it definitely is funny. It also hints at something more to the Reaper universe, it would be a disappointment if they were simply there to keep an eye on Sam for the Devil.
Also the glasses that let you see someone's true self is an interesting prospect for the future as Cady is just Cady when seen through the glasses, and is not Devil like at all. Could she just be a telekinetic type psycho that the Devil took an interest in and not just simply his daughter. We could be looking at a scaled down world similar to wat we see in Angel. Of course this might not be the case and the glasses could be a McGuffin, but still.
Lastly, I like the new dynamic of the 3 main guys living together, Sam's parents were almost a dead end when it came down to it (although does his dad still have the contract?) and so its a good change.