For a while it actually seemed as if August were Baelfire, but I think it's much more intriguing that he isn't. I couldn't help but notice that Baelfire has dark eyes while August has blue. I think August's question to Mr. Gold, "Do I even look like him?" was more rhetorical, meaning that he doesn't look like Bae. Many of us believe August is Pinocchio, which makes sense since he told Emma that he never lies. But he had to lie to Mr. Gold. I can't help but wonder about that. Obviously his nose didn't grow when he lied, but does having to lie contribute to his health problem? I believe the pain he's having in his legs is because he may be turning back into wood. I know that sounds really strange, but I think he is supposed to do something by a certain time or he will turn back into wood, and he's growing actual splinters in his legs. I wonder if he's supposed to find Emma and perhaps his true love. Maybe Emma and Pinocchio were destined to be together in Fairy Tale. Just a thought. And I stick by my theory that he was sneaked out of Fairy Tale in the wardrobe. Since the next episode is about Pinocchio, and entitled "The Stranger," I believe it even more so. The donkey paperweight is obviously in reference to Pinocchio being turned into a donkey.
We all wondered why Mr. Gold was digging in the woods so many episodes ago, and now we know. Perhaps Mr. Gold was afraid someone would find the dagger and use it. He said there was no magic in this world, but was he convinced of that? Someone on the official chat asked, "If there is no magic in this world, how did the Mad Hatter/Jefferson fall into the hat?" My answer is that Emma has magic, and it's possible that only she does and no one else. Remember the curse sent the characters into Storybrooke/our time, but Emma had already been sent forward, so maybe she was born with magic and having not been affected by the curse, she still has it.
In Mr. Gold's shop, I'm sure you all noticed the Mickey Mouse phone. Cute. I can't remember a specific story about musicians, but there was a wall of instruments in his shop, which seemed very specifically placed. Is this a nod to "Fantasia?" And maybe the sorcerer's hat I'd previously thought was Merlin's is actually Mickey's from "The Sorcerer's Apprentice." Duh.
Obviously Sidney is covering for Regina, and maybe he did do it, but for her. Is he under her spell? We all know he murdered Snow's father, so we know he will do anything she asks, even kill. When I was watching the original airing of this episode, I missed that last two minutes and the preview of the next episode (our cable company chose that moment to run a storm warning), so I had to wait until I could watch it again to see the climax. Wow, did I miss a great scene! Emma finally found her voice and when I saw it, all I could think was, "Yay, Emma!" My heart was racing. This show is really getting exciting! :D