More and more, this show reminds me of 'Sports Night' (which was ahead of it's time and died way too soon). One of the stalwarts of Sorkin shows is that he requires the viewer to keep up and to pay attention to what's happening. This episode, we come to understand a little more of the fallout from Matt and Danny leaving 4 years prior. While we don't yet completely know what the rift was or what caused it at it's heart, we can see where the people were divided ("I stood by Matt" vs. "I stood by the show"). Where those loyalties lie will probably come into play in future episodes. Loved the MAry Tyler Moore reference, and the tongue in cheek reference to Lorne Michaels and SNL. I have a feeling there will be a lot of that in this show. And I think that before everything is said and done, Cal will be the best character on the show.
The one thing that I found myself dwelling on was Harriet's voice during the opening musical number. This is a character who supposedly released an album at some point 4 years ago, yet she had perhaps the weakest voice of the cast members during the song. As a musician, I found this a bit odd, but it's so minor, I'm probably the only one who picked up on it.
All in all, I felt this was a better episode than the pilot, a definite step in the right direction.