Ugh, yeah, it still pisses me off whenever they show DVDs at these things. It's a FILM FESTIVAL fer chrissakes. I'm sure it's largely out of their hands but it's still disappointing. Watching a dvd blown up that big somehow makes everything seem digital. I assumed all three parts were shot on video until I read online afterward that only the third was.
The gun thing was certainly a plothole, though you're right that the shitty audio (combined with the thick northern accents) could have obscured a clarifying bit of dialogue. Kinda doubt it though. Maybe they were expecting him to kill himself? *shrug* But somehow, even though the whole climax hinges on that little detail, it didn't bother me TOO much. I enjoyed him going all Travis Bickle as well as Dawson's really nonchalant admission of guilt.
The first was probably my least favorite as well though. I liked the style and it served as a good introduction to the seedy world of the trilogy but ultimately felt slight compared to the other two. I think my favorite was 1980, thanks largely to Considine (or as he was billed on the festival website, Constantine)
The role of the priest was not a surprise, no, but the exact nature of the antagonist is a little more muddled than that. It was more of a group thing that he participated in/helped facilitate (though I guess that in itself is more far fetched than it all being the work of an individual), so it wasn't necessarily that he was into both boys and girls. Dawson had the swan thing, so he was responsible for that, Piggot's dad could have done one of the others, etc. And it's not clear who else or how many other people were involved.
I read some criticism online about the ending betraying the dark, pessimistic nature of the trilogy but I feel that in the scope of the big picture painted by the three films together it's a pretty minor victory for good and chances are that corruption and evil will continue to win out overall. But I don't know, maybe that's just me trying to rationalize liking it. My main problem with 1983 was the subplot with the medium. Now that seemed out of place. The narration and last bit with BJ were a little lame too.
Like I said before, the trilogy is not without its flaws but I think for the most part it's a really good entry in the genre.
Oh, and apparently Ridley Scott is interested in remaking it