I didn't see that episode, I just tuned in for the finale, but I caught the reference to it in the finale.
I would have said that the episode was kinda crappy if it wern't for Jack v. Sloan ) I mean, come on, no Willage?). I just didn't think the whole Rambaldi stuff was worth the payoff.
Jacks line was just so damn great tho.
EDIT: Now I have to watch 2 hours of lost ot get caught up for tomarrow