I believe the confusion stemmed from this:
When 667 referred to the confrontation, he meant the whole battle that will be Odessa, stretching up through the point when our heroes leave Odessa to go to Chicago, Louisiana, and wherever else.
Shadowwulf thought that 667 only meant the brief encounter and ensuing chase between Archer and Jolyne. As he has already shifted focus back to Santa Fe, he stated that the confrontation was over.
667, believing that Shadowwulf was referring to the entire Odessa scene being over, became confussled.
Hope that clears it up.
All hail the king of dunces! You best hold on, I'm opening up my mouth.