This part of the story doesn't work for me. When we first meet Leopold on the shore, he seems happy, kind and generous. In his court, he is publicly callous of his second wife's feelings. In this scene, Leopold appears motivated by jealousy, or at least pride -- not love -- because he flat out admits to Genie that he can never love Queenie in the way for which so yearns. Now, the diary entry is rather chaste. Queenie gushes about a mirror, not a steamy affair. If he wants some sort of relationship with his wife, shouldn't he confront her and ask her to work on their marriage? If he is already wise to her wicked ways, why would he not banish her, instead? I know I'm picking nits when I don't even have their full story, yet, but at 23 minutes into the hour, I've been shown at least three different Leopolds and I am unable (and disinclined) to engage with his character in any way.
I do agree with the people in the forum who have been speculating on how Leopold came by this diary. I suspect Queenie wrote the entry intentionally, to set up both Leopold and Genie. She probably gave it to her father who either left it in a place where Leopold would be sure to find it, or perhaps the father even brought it to Leopold, or had another servant do so. I mean, since Leopold is unable to love Queenie in the way he thinks she wants, would he even care enough about her to snoop in her diary? Anyhow, when Genie asks what the king will do to Regina's mystery admirer, Leopold says that is his concern, not Genie's. Kinder people than I have suggested he would have let Regina leave with her mystery lover. I don't think so, if for no other reason than, were that the case, it seems to me Leopold would reveal that by episode's end, with his [SPOILER] dying words to Genie.
Storybrooke, Sheriff's Office: Emma comes in to find Sidney monitoring the feed from the bug Emma planted under Regina's desk. He plays a section of the recording (on a tape cassette recorder!) in which Regina is making plans to bring a cash payment to Access Road 23 (Hi, Lost fans), that night. Emma says a payoff in the woods sounds promising. Sidney and Emma set out to find out just whom Regina is meeting.