@ Leodious: I think that scene of Prince Charming & Red Riding Hood in episode, What Happened to Frederick was simply what happened right before the same scene in episode 10 7:15 left off.
I agree that it’s what happened, it’s rather obvious. What happened in WHtF is just what happened right after 7:15, but in 7:15 it is shot such that it appears as if James is leaving.
I think the way it was shot and set up is meant to imply that the book August remade and gave to Emma includes new information. We saw it differently the first time because the original book did not include what happened after.