Lulu-mount

Yes, my Lord! We will defend our momeland.

Intro says that the Order of the Black Knights was defeated, along with Zero. A poster informs the public that Zero's been executed, 'sif I'd belief that.
C.C.'s still alive and well.

Lulu is shown walking down the hall when he is called out to by a familiar voice. He looks over to see none other than Viletta Nui. It appears she's now the P.E. teacher. She begins chasing him because he's been skipping gym, but with the help of various student council members, he escapes.

Riding away on Rivalz's bike with his brother, Rollo, Lelouch remembers recent events, regarding Zero and the Black Rebellion. Britannia crushed the rebellion, and many of the Order of Black Knights have been imprisoned.  Seems he's lost his memories of being Zero. Meanwhile, a third party monitors Lulu…

Ya srsly? That guy was a real nutjob.

Arriving at a casino, Lulu's old personality shows through as he notes the unfairness with which Britannians treat the Japanese. Moving along, he bumps into bunnygirl Kallen, the latter who shows typical 'Eleven subordinance', though Lulu tells her to stop. They're interrupted by another man, who grabs Kallen's head and inquires about purchasing her. Lulu objects, and challenges the man to a game of chess, even though the latter is known as the 'Black King'. After some PIZZA HUT, we're shown the imprisonment of most of the Japanese Liberation Front, including Todou and Ougi.

This episode of Code Geass is sponsored by Pizza Hut

Of course, Lulu easily defeats this 'Black King', but the latter doesn't take it well and has his henchmen subdue Lulu. Funny how nobody objects.

'Cake

Hey! That student's getting assaulted. Let's sit here and watch.

At that moment, the entire building shakes, and Kallen immediately beats the living daylights out of 'Black King'. Grabbing Lulu's hand, she drags him away.

Meanwhile Governor-General Carares meets representatives from the Chinese Federation. (The Chinese Ambassador looks pretty fruity, might I add.) When asked to disarm, his bodyguard Xingke cuts the belts of the security detail, angering Carares. However, they are interrupted by an explosion in the distance.

The explosion was caused by remnants of the Order of the Black Knights attacking the building in which Lulu is currently located. Their objective is pretty clear, as Lulu's old Knightmare extends a hand to him. A Britannian strike force quickly interrupts that.
The item between Kallen's cleavage was Guren Mk.II's key, and she loads into it. Elsewhere, Lulu and Rollo attempt to escape, but another explosion sends Lulu falling into an abyss. Coming to, Lulu races back up to find Rollo, only to come upon the carnage left in the wake of the battle. Both Britannians and Elevens have been killed. At that moment, C.C. shows up!

However, as she extends her hand to Lulu, a shot is heard, and C.C. haphazardly falls to the side.

Lulu catches C.C., just as the Britannian troops arrive.

Britannian cruelty is highlighted again, as they begin burning the bodies to erase evidence. Then the leader of the special investigations squad reveals himself, thanking Lulu for playing his 'role' in luring out C.C.

As the Britannian soldiers prepare to 'dispose' Lulu, he curses the world and wishes he had power. At the moment, C.C. kisses him and his memories return.

Paralleling the first episode of last season, Lulu activates his geass and has the whole lot of Britannians kill each other.

Meanwhile… Suzaku appears to have become an important person in Britannian hierarchy, answering to the Emperor himself. He vows that he will kill Zero.

Thoughts:
It's out! It's out! …I've been waiting (along with several others) for the second season of Code Geass, and I'm happy to say it didn't disappoint. Although, I'm dying to know what happened to Lulu in the immediate aftermath of his showdown with Suzaku. It's highly implied that Suzaku showed mercy to Lulu because of their old friendship, due to one of Lulu's flashbacks. With regard to Kallen, she was pretty shocked at Lulu's identity at the end of last season, so I am assuming she's accepted it by now. Getting the Order of Black Knights back together should also prove interesting. As for Rollo and Viletta, I think they were stationed to spy on Lulu. It's also unclear who implemented the fake memories in Lulu, since C.C. seemed aware of of them and said that it was time to unlock his old memories. It could have just as easily been that special investigations team, though. Looks like they're also bringing the Chinese Federation in as a third party. Yaaay conflict! Also, where is Nunnally?!
At least we still have good ol' Pizza Hut. xD
What bothers me, though, is the ED. Most of you probably took this as a grain of salt, but I noticed that all the Britannian characters were drawn with white and angel's wings, whereas Lulu and crew were drawn dark with black wings. Is the message here that Britannian = good and angelic, and Order of Black Knights = dark and evil? Expanding on that, seeing as how 'good and angelic' usually wins…
In my opinion, Britannia is far from good and angelic.