Hurley continues: "Remember when I said I knew you from somewhere? Well, maybe it's because I made you up." Libby's all, I'll show you made up. She takes some tentative steps towards Hurley, looking rather nervous at her proximity to the cliff, and asks him what the name was of the man who broke his leg on the other side of the island. Hurley doesn't know. "You don't know. You know why? Because it happened to me. His name was Donald, and I buried him." Then she yells at Hurley because she's buried a lot of people, so for her to say he made it -- and her -- up is insulting. If she doesn't cool down, she might have to bury Hurley, too. Well, as long as she doesn't try the Sgt. Martin Riggs method of jumper negotiation.
Hurley's thinking about this as she lectures him, and once she's done, he says, "When you saw me on the beach this morning, was I holding a slipper?" Libby's kind of surprised by the non sequitur, but she says no, not that she can remember. Then she takes Hurley's face in her hands: "I am real. You're real. The way I feel about you, that's real. The big wet one I'm about to plant on you -- that's real." And then she does that. "And that was real," she says. Hurley says maybe she should do that one more time just to be sure. She smiles, and then asks if he's ready to go back. Sounds like he's ready for something else, if you ask me. They both look down at the surf crashing on the rocks below, and start to head back, holding hands. "Do you really think I can, you know, change?" she says. Yeah, says Libby.
Flashback to the scene where Dr. Brooks plays his little photo trick on Hurley -- only we're watching it from a different perspective, and Dave isn't there; we see Hurley put his arm around nobody while Dr. Mind Games snaps the picture. We pull back over another table, where a woman with disheveled brown hair is sitting. It's hard to tell, but as the camera swings around to reveal that it's Libby, I don't think she's watching Hurley. Her eyes are off in another direction, and at any rate she seems pretty out of it, so I think it's too early to confirm whether she remembers Hurley (who, despite the Dave hallucinations, has thus far seemed fairly lucid and seems to remember most of his institution life pretty well). She's not too out of it to swallow a pill the nurse gives her, but she's pretty zonked (or possibly having a flashback within a flashback).