Yeah, I also thought there's some temporal anomaly in this episode. The first episode had that almost confession but suddenly the beginning of this episode had taken whole steps backwards. Fortunately it seemed to reach a point somewhat close to the ending of the first episode towards the end. I hope the beginning of the third episode won't take again steps back...

I really like this series so far. Sometimes Sadako's creepiness feels quite forced by the plot, but if you ignore that there are lots of really nice scenes here. I like the destined couple feeling as well (the only kind of romance setting I really ever wish to see), and I hope there won't be any serious triangles in this series.