This episode was both great and hard to watch for a lot of it. I'm not a big Dawson fan, so I liked it when Pacey yelled at him on the boat when he wouldn't stop giving Pacey crap for inviting Jack like it was some horrible thing. I mean he's the brother of Pacey's girlfriend, he had every right to invite him along, but of course Dawson made it all about him. I also liked it when Jack called Dawson on his crap as well, but I was glad that Dawson finally caught on by the end of the episode when he talked to his dad, that was a nice moment.
I loved the way Pacey took the heat for the broken fishing rod even though it was Jack that actually put it there. Again Pacey showing how selfless he is. And I agree with you about that scene on the beach, one of the best performances in the series and very unforgettable. You felt Pacey's pain and just wanted to give him a hug.
On a more shallow note, Pacey was super HOT in that episode.
There's just something about Josh in shades