Joss Whedon wanted to introduce another character who would be very different from both Wesley and Angel, and when writer Garry Campbell pitched the idea of street kids battling vampires, the character of Gunn was conceived.
When Angel first walks into the brothel, we see a female demon from Oden Tal from episode 13, "She". This implies that Jhiera and the other refugees have assimilated into society, perhaps due to Angel warning the males of their world to stay away.
David Nabbit was originally intended to be a recurring character, but only appears in two additional episodes. David Herman had difficulty fitting the show into his schedule, and so the writers stopped writing scenes for him.
Special Effects Supervisor Loni Peristere refined the dusting effect used when a vampire is killed, showcased by Gunn's "fly-through dusting" in the opening scene of this episode. This technique, which costs $5,000 per use, depends upon a CGI skeletal frame surrounded by simulated dust, carefully matched to a projection of the live action footage. This allows for a "complete organic transition" from vampire to dust, says Peristere.
This episode is the first time that Angel willingly introduced himself as Angelus, something he refuses to identify as when he has a soul. The only other time he has done so with a soul was when he was drugged and believed himself to be Angelus.