Of course the first thing you ask yourself is what the heck are Nazis doing in Hawaii? Heck, even Magnum couldn't help but ask Lena that question.
But it seems like every show at the time had to have a Nazi story (HAWAII FIVE-0 had at least 2 of them) so it was MPI's turn.
That said, I love this episode! It's in my TOP 4 of the season - alongside the pilot, "No Need to Know", and "Skin Deep". And the twist I totally did not see coming! Right up there with "Skin Deep" and S3's "Black on White" when it comes to best plot twists!
Now I just need to watch the last 2 of the season - "J. Digger Doyle" and "Beauty Knows No Pain" and I'll be done with the first season.
As for the dispute about the ending... it's true... I felt a bit cheated in that there was this huge build-up to some shocking conclusion and then... nothing. Was she shot? Did she commit suicide? Based on what was presented I have to believe that she gave up. She did say "It's over" and with Saul dead she really had nothing left to fight for. Though a point could be made that she also had nothing left to live for. In any case, Magnum shooting an old frail woman wielding a measly scalpel sounds gratuitous. He's a combat vet - he can take her no problem. Plus, there was no gunshot. So the 2 remaining possibilities are that she either committed suicide or gave up. I go with the "gave up" option since we don't actually see her taking her life nor is it mentioned at any point that she killed herself. As for Magnum being upset at the end by the tidal pool... well that's natural. He doesn't have to witness a suicide to feel upset. I mean a sweet grandmotherly old lady and her equally grandfatherly husband (who were long-time friends of Mag's) just turned out to be murderous, throat-slitting Nazis. Who wouldn't be shaken up by a revelation like that?