1x03 'The good, the bad and the really ugly 

If you mean 'ugly' as in James trying to get back into the dating scene again, or the fact that Terrance was still trying to blackmail Duncan then yes, that was ugly, but the fact that James discovered he couldn't do without Katie was really a 'good' thing. As for the 'bad' Duncan's ex Lizzy getting engaged to Terry the terrible, was more than bad in my book.