The difficulty in this episode ramps a little too slowly for me. I think if you made your enemies move a bit (instead of staying static) not only would it increase the difficultly but it would give a bit of life to your game as well.
The dialogue between Jim and his nemesis reminds me of Metroman, they seem to have more fun jesting than actually shooting each other down (which is fun). It would be nice if there was some faces to go with the dialogue (since this episode seems to be more story driven).
Episode 2 i still my fav - but its really good that you are trying new things. As always good job and best of luck in Kongregate Geo.