I really didn't get a 'long lost love' vibe from Kate. I've been trying to find scenes where Neal refers to her and their relationship specifically, because I have this theory that they let everyone believe they're lovers when actually they're brother and sister. I have a horrible feeling this theory doesn't hold up having viewed all of the appropriate scenes, however. It was just weird. Neal has chemistry with everyone, yet seemed to have next-to-none with Kate.
Meanwhile, Neal and Peter were so cute on stakeout together. SO CUTE! And I love, love, love Elizabeth.