Elementary, Dear Data

Picard utters "merde", the French word for "shit". As it was said in a foreign language, it passed the TV censors. Merde is sometimes translated as "damn" in subtitles. This is not euphemism but reflects common usage in French. French conversation is relaxed about the use of swearwords with sexual connotations, whose literal translations would be considered very strong or taboo in English. For example, "Je m'en fous" literally means "I don't give a f***" but is used by the French in the same way as the milder "I don't care."

Moriarty hands Data a piece of paper upon which is a sketch of the Enterprise. Data immediately storms off the holodeck, and shows the paper to La Forge. As the paper was holographic, it should have vanished the moment it was removed from the holodeck. However, other episodes have established that some objects (such as food) are actually replicated within the holodeck, and thus are "real" (i.e. not holographic), depending on the needs of the program and its user (as well as the plot of the individual show).