After the somewhat lacking first episode, this was a lot better. I watched the two first episodes back to back, so I was expecting episode two to continue from where the episode one left, but it didn't. It took me a while to figure out that this was actually one of the "monster of the week" episodes and in that matter it took quite a jump from the episode one. In my opinion the jump was a bit of a stretch. In episode one they are pretty much detached from the days of x-files at FBI, but in this episode they are almost like nothing had ever happened in between. So watching this as a part of season 10 is not as rewarding as watching it as a stand alone MOTW episode.
Having said that, the script does fill out Mulder's and Scully's story quite a lot. At least from my point of view, I'm not as familiar with the seasons 7-9 as I am with the earlier seasons. All in all very very enjoyable episode, but worth noting that the main plot is not (necessarily) connected to the mythology at all. I got a bit distracted before I figured it out.
This could become one of the classic x-files episodes. The production values were good. The episode was somewhat gory, but it's kind of "90s gory", not too real looking.