Sounds like a great episode!
Though, I am a tiny bit disappointed in Michelle (she's my favourite before any Michelle fans lose their **** over that). Ken's comment about her and Calum was awkward and it's reasonable to find it inappropriate, but she should have made that clear at the time, instead of playing along and actually answering, only to go and complain about in the Diary Room the following day.
As for Katie not seeing a problem with having sex with a married man because she wasn't married herself ... well, I'm not shocked.