Xena, now having gone completely nuts (and having received a budget increase to the show), gets a new horse, new clothes made of animal skins and ventures off into the middle of no-where. It seems that Gabrielle was not sent to Hades after her death, but instead to the amazonian eternal-life land. Xena goes to join her. It seems that getting there is much more complicated than just popping around to see Hades. This complication has her meeting up with a tribe of Amazons (not the amazons previously shown). She tells tales of her run-ins with them previously, there are prophecies, references to the land of Chin, etc. etc.
Overall a very good episode, a good lead in to part 2 even though it feels slightly drawn out to make it a two-parter. It's enjoyable, Lucy Lawless acts very well, and we learn more about Xena and the amazons in general.
It seems that Xena has done some really terrible things in the past (more terrible than just rampaging through the countryside killing everyone), so we learn why she needs to continue to seek redemption.