Things are never easy for these two. Buffy still thinks Spike's dead and it's hard to know what Spike thinks. Will he remember their meetings, I hope so. Angel's not gonna be happy when he hears about Spike's transformation, I fear for him in the clutches of W&H. We need the Scoobies to ride to the rescue. Great update, looking forward to more.

Ack! How did I miss this awesome update? The plot is definitely thickening. Keep stirring!

more and more interesting, alive Spike and demon fighting it out for supremacy? Looking forward to the next chapter.

Ooh, very interesting!  Live? ish? Spike!

Btw, this is a minor point, but I suspect Dr. Sato (if he's Japanese) would say ne? (pronounced neh) at the end of sentences, rather than hai.  Nee (pronounced neh but longer) if it were a question.  

Of course, his particular quirk could be different, but ne is used very commonly at the end of sentences in Japanese conversation.  It's short for so desu ne, which means roughly, "isn't that right".