Well, on the note of Kallen liking Zero, but maybe not Lelouch... I think it's the same as with Superman or any other superhero that had a secret identity. Kallen went on for so long not knowing Zero was Lelouch, she sort of grew attached to him and admires him so much. That's just my opinion of course. Deep down, I think Lulu may be growing on Kallen a bit, but I don't think she likes/admires him as much as his other personality, Zero. All just my opinion of course. I personally like Shirley as Lelouch's other half instead of Kallen or C.C., but which ever one it may be at the end, I'll be fine with it. I'm into the show for the other stuff that isn't shipping. =P
As far as the actual episode goes, minus the kiss/almost yaoi moment with Rolo, it was a good episode. I liked the mindrape by Rolo there on the train, Haha. At least that's what I thought it was too. Lulu using Geass on the street scum in the alley was great. Him saving the Black Knights' asses with the help of Rolo and his Vincent was great too. The Black Knights would be screwed without their Zero.