The one where you go to the river and you and your trusty side-kick Bell* (Ow, okay- it's the other way around, sorry Belle) watch the girl bathe in the river (the 2nd time, not the first- she just disappears), but the second time she does it- the two of you watch her sunbathe and "enjoy" her surroundings. At this point Belle (Bless her tiny Pixie heart) offers to help you "let off some steam". It IS quite awesome.
As to why I had to start over- something happened in an earlier version where I couldn't get Callie's "item" for the Courage Quest, so I just had to begin anew. It was a good thing too, or I would have missed out on Erato and the Faerie Queen or my game would have just stayed broken. I think content was added to events that had already passed and the old saves didn't integrate into newer version that I was trying to play- or something. This is just one of those games where you don't mind starting from scratch- don't want to if it can be avoided, but it's not really a grind-y type of game, so it's okay.