Addition to the prior goof: it's possible that the room Kenshin and Saitoh are fighting in isn't in the direct line of sunlight, so it would seem darker than normal.
At the beginning of Saitou and Kenshin's fight, the sun sets. This is why its so dark while they're fighting (for the dramatic effect, i suppose). however, when it cuts to Okubo Tochimichi and Inspector Kawaji riding along in the carriage, the sun has not set yet, it appears to still be early evening.
After Saitou's sword breaks and he throws it at Kenshin, Kenshin blocks it with his left fist. Several minutes later, when he's breaking the Battousai trance by punching himself in the face with his left hand, the wound magically disappears.
Kenshin: You choose pride over your life. A good sentiment.
Saito: First rule of the Shinsengumi, shun that which opposes the way of the samurai. Fleeing from an enemy before you is such a thing!
Saitoh: There is a safer place to run than Shanghai... It's called Hell.
Saitoh: I will kill you now. Kenshin: I will kill you now? That's my line.
Kawaji: If you keep mocking me, I'll arrest you! Sanosuke: Try and arrest me, baldy!
Kenshin: Your life's been spared for now. Saito: And so has yours.
(The top Saitoh's sword is cut clean off) Kenshin: Next strike...Your head will fly...
Hajime Saito: You can train a dog with food. You can buy a person with money. But there isn't a man alive able to influence the wolves of Mibu.
Hajime Saitoh: Each time he swings his sword he gradually, unconsciously, but surely, is returning to his old self... Hitokiri Battousai.
Shishio is based off a member of the Shinsengumi, Serizawa Kamo. Kamo was a skilled swordsman, he obtained the highest level a swordsman could reach in his style, the Shintou Munen Style. This meant that he mastered every aspect of the style, including the sucession technique. However, he not a great person. He was always covering up his actions. He also frequented brothels.
Toshimichi Okubo, who shows up in this episode, is another figure from real Japanese history like Aritomo Yamagata.
Shishio is similar to Kenshin in the nature to his job during the Bakumatsu war. Shishio was the man who replaced Kenshin as Hitokiri for the Chosu, when Kenshin became depressed from a certain loss (not to spoil, watch the OVA's). Once the war was over, the government burned Shishio alive in fear that he might leak important information. To no avail, though... Shishio survived, and has an agenda of revenge.
At no point in the series does it show Kenshin and Saitoh fight to a finish with any definable winner. "Who is more skilled?" is always left unanswered. One can assume after Kenshin masters Ama Kakeru no Hirameki in a later episode that he is superior.
Saitoh's motto, "Aku-Soku-Zan," means "Evil-Instant-Kill." Meaning that any evil Saitoh confronts will be destroyed. This is the same motto as the Shinsengumi, of which Saitoh was a commander.
During his duel with Saitoh, Kenshin reverts completely to his Hitokiri Battousai persona, and almost kills Saitoh.
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