Yes the second part to that episode was never written and never filmed. The reason for this was that Jag originally got canceled (hence the lack of 24 episodes in it's debut season) toward the end of Season 1 (so I've read, not 100% sure on this but it explains a few things) and was later picked up again, resulting in an additional 9 seasons. Another reason for not continuing with that episode was that Catherine Bell starred in the teaser portion of the episode and her character Diane was murdered, having her suddenly come back to life in Season 2 was a bit odd so the writers covered it up with Deja Vu from Rabb in the 1st episode of Season 2 and again some flashbacks of this particular episode are referred to in Season 3 if my memory serves me well. (I got most of this information from TV.com and the rest are just my assumptions.)
The show is great though and I'm a big fan...and I'm glad it went on to do as well as it did.
The show is great though and I'm a big fan...and I'm glad it went on to do as well as it did.