This season of Room 104 is undoubtedly the one with the most clear "theme" accross all of the episodes. The 90's nostalgia motif really works well in this episode, thanks to its amazing script.
"The Night Babby Died" has one of the best writing on this entire show, maybe second only to season one's "Red Tent" episode. Even though it lacks on the "surprise" factor that most episodes have given us, this one is still amazing since in only 25 minutes we get so much insight into the past and present lives of these both characters. Every single line of dialogue and every fact presented adds so much layer to them as individuals and to their relationship, both as kids and as stranged adults.
Here's hoping the season can end on a high note, with an episode as strong as this. Even with its misshaps, Room 104 has always been a very interesting TV show, and it will be missed from the television landscape.