Of course, Felicity is talking about the Lucky situation, but it applies to Sean's situation equally well. Felicity is back to telling Sally about her "scoring" with David, and that David told her that he would look after Lucky.
At David's place, Felicity tells him that "it is so amazing" that he's taking in Lucky. David utters the words, "Finally, I'm getting Lucky." Felicity asks him if that's the only reason he's doing it. He replies, "So I could make that bad joke? Yes." They laugh and embrace. It's like watching Felicity kiss her twin brother. The next thing you know, they're on some kind of chaise longue or day bed, making out to a cheesy song. The place David lives in appears to be a loft with windows on a couple of sides. Of course, there aren't any window coverings, so they could be seen by anyone in the well-lit building that is clearly visible from David's place. However, someone a bit closer to home is watching them. Lucky whimpers and watches them get down. Felicity is more disturbed by the fact that a dog can see them and not by the fact that any number of perverts could be watching through the window. ["'Could be'? My parents live in a high-rise, across from another high-rise, and not only can they spy on their neighbours across the street, but they can see their neighbours spying on them. Also, when Glark and I were in Vancouver a couple of months ago, we went to a party in a high-rise where the resident of the apartment had a telescope which everyone at the party used to spy on the neighbours across the street; Glark and Sugar Larry saw a guy across the street masturbating. Anyway, my point is, 'could be,' nothing; strangers would definitely be watching them get it on." -- Wing Chun] David gets up and puts Lucky in what appears to be the bathroom. Felicity can still hear him whimper. And by "him," I mean Lucky. Felicity decides that Lucky needs to go out for a walk. She gets up and puts her pants on, then asks David if he wants to go out with her. I can still hear whimpering, but this time it is David.
Cut back to Felicity making a tape for Sally. Felicity says, "We didn't have sex that night because of the dog, which was actually okay with me." Her voice-over tells Sally that they all slept really soundly that night; however, it doesn't look like David's that comfortable having Lucky join them in bed.
At Elena and Knoll's apartment, Felicity pours dog food into a cereal bowl and Elena deadpans, "You didn't have sex because of a dog?" Felicity whines, not unlike the way Lucky whined the previous night, about being uncomfortable with the dog watching them. Elena says, "Look, there are a zillion dog owners in this country and they all manage to score." Felicity wants to change the subject and Elena says, "You don't want to have sex with him, do you?" Elena thinks that Felicity is using the dog as an excuse not to have sex, "given [her] issues with sex." Felicity denies that she has issues. They discuss the reasons why she didn't have sex with Knoll and Ben, which boil down to her not being ready. I love you Elena, but I think that is a perfectly valid reason to not have sex with someone. ["Especially if that 'someone' is Knoll." -- Wing Chun]