Yeah, the flashback structure can be a tricky one, and you really do (I think) want to mix up the way you handle it so that you're not constantly in the past perfect tense. I wasn't sure how the italics would work out here--especially when I did it for both dialogue and description but...I think it worked. Maybe the key is being judicious in how much of any one technique you use.

and back in bed with Bodie - priceless.
That was one of the fist images I had with the story. It just seemed so...right and funny all at the same time. Poor Doyle and his pride in his self-discipline! But then how could he know Bodie would take the opposite resolution?

Thank you for the comments!