Man, this episode was awesome. The supernatural stories are cool but I love character driven stories. And being a father this episode had my heart strings pulled to the max.
I can relate to Walter's actions and if I had his knowledge and power I would have done the same thing.
I also loved how they told the story, with the 1985 intro, the 80's trivia, and it revealed a how Nina lost her arm.
This episode also proved that the focus of the show needs to be Walter and Peter with all the nutty stuff happening around them. The father son dynamic is far more interesting to me than Olivia being the main protagonist of the show.