Rimmer is all military pomp and circumstance, even if he doesn't have officer material. And because of his being one level higher than Lister, he uses it as his opportunity to try to force his bunk mate to go through the rigors of ship life as though they were still a crew. He hides all of the cigarettes and only rations them to Lister if he obeys commands. After running through a ship's inventory, Rimmer finally allows Lister to go to the bar and enjoy himself for the evening. When there, he has a flashback to an evening with his mates, all drinking and being annoyed by Rimmer, as Lister's love for Kristine Kochanski - a petty officer who Lister barely knows (although they had a previous relationship in the books and later series) - is mocked by the group. The scene ends with Lister remembering he is all alone, and makes for a really touching moment.
Lister also decides to try and beat Rimmer at his own game, and decides to take the exam to become a chef. Even though he has no passion for the career move, he knows it will make him a higher rank than Rimmer, and he can go on about his life without Rimmer constantly harassing him, as he knows Rimmer will never pass the exam to raise in rank. In an effort to fluster Lister, Rimmer shows up in Kochanski's body via hologram. He even tries to convince him to spend time with him while in her form, to Lister's disgust. The episode makes it appear that Lister passed his exam, but the beginning of the next episode proves otherwise.
Cat has some great moments in this episode as well. Rimmer teaches him how to use the vending machines to get fish when Cat finds the stash of cigarettes and refuses to give them back, which leads to Cat ending up in a near food coma from overeating. The episode was written as a straight sitcom at the BBC's insistence, as they were afraid too much sci-fi in the show would repel viewers.
We'll go ahead and rate this episode 9 holographic breasts out of 10.