Ears, tail, mouth are much of what I look at. Eyes to some extent, but I generally don't notice that as much.
Also an overall image of confidence or not as well as the situation.
For example, Ares is very confident in his aggression - tail and ears are up, he postures and gets up above the other dog, but it's always done in a defensive situation, so I consider him to be defense-aggressive.
Here's some illustrations of different facial expressions:
http://www.pawsacrossamerica.com/interpret.html
I haven't read this book, but it looks like it's worth looking at:
http://www.dogwise.com/ItemDetails.cfm?ID=DTB856&AffiliateID=45241&Method=3
This article is long, and I don't remember which parts of it I disagreed with, but it's a good read:
http://www.siriusdog.com/articles/schutzhund-sport-dogs-winkler1.htm
Dominant aggression isn't as common as fear or defense aggression. A truly dominant dog rarely displays aggressive behaviors. Their mere presence is all they need for other dogs to heed them.
If the dog is quick to react, he is reactive - it's about the threshold to stimuli. He can be prey reactive, he can be defense reactive. Ares becomes very reactive when there's food available.
Aggression vs reactivity really isn't a
vs. The dog can be aggressive with or without reactivity and he can be reactive with or without aggression.
IME, almost all aggression can be handled by gradually building positive associations with things and by teaching obedience and building confidence. Positive associations can change their perspective so they don't need to be defensive. Obedience helps build their confidence, provides them with leadership (it's a piece of it, anyway) and allows control over their behaviors - if the dog is in a sit stay, he can't be lunging and biting.