Well Merle and Daryl are finally reunited!  The Governor lost an eye, Oscar who we barely knew died, a surprise appearance from Shane (WHAT?!), Carol isn't a lesbian, and fresh blood in the prison.  Who else can't wait until February?AMC has a full episode 8 recap here so you can refresh yourself if you'd like.  Here's my thoughts on the episode:

This show needs a constant re-supply of the living to keep it moving forward, since people die off left and right.  We thought we had a couple with Oscar and Axel, but Oscar's gone (we'll get to that in a minute.)  Now we have a new group that stumbles in the backside of the prison.  I'd say at least 2 of them will become regular characters.  The show may have to sacrifice another to the zombies to continue.  (Seems about the right odds, right?)

Rick, Daryl, Michonne, and Oscar make their rescue mission and so far it's working ok.  Except Rick loses his mind again and sees Shane coming at the group with a gun.  We all know Shane is dead, and looks nothing like we last saw him.  Rick pauses before shooting him, long enough that Oscar gets shot.  Crucial mistake Rick made that will come back to haunt him.  Is he losing his mind?   Turns out by the way that it was just one of the Governor's men.  Maybe we will see a few more Shane cameos before the series is over?

Michonne and the Governor's fight was pretty cool, although I find the timing of Andrea walking into the fight and saving his life a little too perfect.  A second later and he would have been dead.  Now he's just pissed and without an eye.  He turns his anger to Merle, who lied to him about killing Michonne.  The end of the episode leaves Daryl and Merle reunited in the arena with the town wanting them dead.

Andrea is shocked to see Daryl, she now knows the group is the "terrorists."  This is going to be a game changer for Andrea.  She'll second guess herself for saving the Governor.  She's going to want to reunite with the rest of the group.

Also I think it's safe to say that if Merle's relationship with Woodbury and The Governor is over one way or another.  I can see Merle getting killed, although I'm not sure it will happen.  If he survives the arena, where would he go?  He couldn't just walk into Rick's gang after kidnapping Glen and Maggie and torturing them.  I think Walking Dead would be absolutely foolish to kill of Daryl.  He's been the wildcard from the beginning of the show that has kept the comic book and show seperate.  He's also undoubtedly the fan favorite.

So now we wait until February.  But looks like we have a special New Year's Marathon you can tell your friends to watch to get caught up on!