Great chapter and for fear of being repeato-girl I say...the plot thickens.

Spike grinned, some of the animosity in his glare disappearing. “Heard of me, have you?”

This line reminds me of Checkpoint from season 5, when that watcher...uh...Lydia I think her name is...questions Spike about Buffy and he gets that look on his face and says "heard of me, have you?" That's the look I imagined on Spike's face in this part of your story. :D

Great job! Can't wait for more!