The Bronze. Spike is playing pool. Buffy snarks, "So you traded up on the food chain. Then what?" I really wish this script gave us more clues as whether what we're seeing is exactly what Spike is telling Buffy, because I have a very hard time believing he told her, "I was a po-faced little git who wept a lot and then ran home to Mummy." Well, I do. And it never really becomes clear in the rest of the episode. Spike is offended by this characterization, and explains that becoming a vampire was an incredible, powerful experience. In fact, "getting killed" made him "feel alive for the very first time." He claims he gave up living by the rules of society and made a few rules of his own. In order to do that, he had to get himself a gang.
Change to a shot of a glowering Angelus with Dru and Darla behind him. We see he has Spike tightly by the neck as he menacingly inquires, "Remind me, William. Why don't we kill you?" So we see that Spike didn't really get himself a gang; instead, he was just grafted onto Angelus's family, and Angelus was obviously top dog. Which reinforces my suspicion that Buffy isn't really hearing all that we're seeing. Anyway, back at the gloomy place, entitled "Yorkshire, 1880," Spike insists that his name is now Spike, and Angelus wonders when Spike started talking in a working-class accent. Darla expositions that the family barely escaped London because of Spike, who apparently has been on a mad killing spree, most likely torturing his victims with railroad spikes and all. Angelus bitches that he and "his women" are now hiding in a mine shaft due to Spike, and that "this is not a reputation we need." Spike quite rightly reminds Angelus that they're vampires, and loudly protests the notion that they need to work with any finesse. Dru stares at Spike and smiles indulgently. When Angelus approaches Spike, menacing that they've become the hunted, Darla smirks (as Strega noted, you can pretty much expect that any Darla line is delivered with a smirk) and sing-songs that the "boys" are going to fight. Clapping excitedly, Dru responds, "The King of Cups expects a picnic! [worried] But this is not his birthday." To Dru's nonsense, Darla patiently replies, "Good point," with a very expressive eye-roll. Angelus and Spike have a conversation in which it is revealed that Spike loves a nasty brawl, while Angelus favors an artistic, planned kill. Good lord, when did Angelus become such a pent-up bore? Or maybe I should say, why was he so much more fun and sassy in second-season Buffy when he was obviously such a kill-joy in the 1880s? Spike calls Angelus a poofter, and they begin to fight; Angelus quickly gets the upper hand. He pins Spike down with a length of pipe at his neck, but Spike just laughs and revels in the fact that he made Angelus lose control. Angelus stalks away, saying that perhaps an enraged mob will teach Spike the lesson he needs. "That or the Slayer." Spike sits up, suddenly intrigued, and asks, "What's a Slayer?"