Xena going undercover as a beauty pageant contestant mirrors an event from Lucy Lawless' own life. In 1989, she took part as a beauty pageant contestant in Mrs New Zealand which she won.
Regarding Hestian virgins. Hesta was the first born of the Olympian gods, sister to Zeus, Hera, Aphrodite, etc. She was godess of the hearth and home; the Roman godess of the hearth was Vesta (see Vestal virgins). Since the hearth fire was a home's only source of heat and cooking, Vesta was very important. Every town had a sacred hearth fire dedicated to Hesta and maintained by priests (and virgins because Hesta had taken a vow of celibacy).
A castle appears at 5:41 that has appeared at other times over the course of the series.