I am not your action recapper. Suffice it to say Snow and the dwarfs defeat all the guards, but then they're magically restored to health and/or life. When Snow and Co. are surrounded, it's then that the fairies arrive to save the day. They dive bomb the palace courtyard, wiping out George's forces with fairy dust.
Storybrooke, Granny's B&B, Day. Henry goes to August's room and tells him Emma wants to run and take Henry with her. He reminds August he was supposed to make Emma believe. August totally lames out on the kid with an, "I'm sorry. I failed. [...] I tried to show her. First it was my legs. And now -- now take a look... at the unvarnished truth." When August pulls up his sleeve, we can see one arm too, has turned to wood. Henry: "It's wood! [...] All of this. I was right. The curse. It's real." When August tells Henry he's a smart kid, Henry says, "And you're Pinocchio." August: "What gave it away?" D'oh. August explains he's changing back because he hasn't exactly been a good boy. If the curse doesn't break, the transformation won't stop.
Henry is excited by this development and says that once they show Emma that August is turning back into the puppet he once was, she will have to believe. August tells the boy he already tried that. Emma doesn't want to see, so she doesn't. He's getting tired. It's hard to ride and walk. Soon it will be hard to breathe. He wants to spend what little time he has left with his father. Henry: "Marco." August: "Told you, you were a smart kid." Henry: "So, everyone's giving up." August: "I'm afraid I don't have a choice. I'm sorry kid, but I'm out of Operation Cobra. Now it's up to you." Alone in the hallway outside of August's room, Henry dons his resolve face. We cut to the...
Granny's Diner. If I say, "The apple doesn't fall far from the tree," you'll never respect me, so I'll refrain. Emma looks just as steely as her boy did in that last shot, though. It's Archie's turn to beat Emma over the head with the fact that she can't prove anything bad about Regina, and therefore has no case for custody. He says Henry is the one getting hurt here while this war rages between the two mothers. Henry may have been happier since Emma entered his life, but he's skipped school, stolen a credit card, run off, endangered himself repeatedly. In the eyes of the law, it's not so clean cut. When Emma asks how it looks to Archie, he tries to reframe the conversation. He suggests that his advice to Emma about indulging Henry's fantasy life has only made the boy retreat further into it. Emma wonders if Archie thinks Henry is better off with Regina. He only offers a weak, "I never said that." When Emma asks if he thinks Regina would ever hurt Henry, Archie's, "No, never," is much stronger. "Everyone else, but not him." He says Regina's actions have all been defensive. Really? Tell that to Mary Margaret. He says it's not a matter of "better off" for Henry. The war between the mothers must end. Emma has to figure out the best way to accomplish that.