I thought for a while that he was a ghost of a figment of Olivia's imagination because during the whole first half of the episode no one pays any attention to him. (just like in the Sixth Sense)
But then I just figured out that it was an old episode.
I'm a little peeved that the whole religion angle seems to have been dropped (hopefully not) but besides that I am thrilled with this show.
I have officially said goodbye to Heroes with that episode of Fringe being put in the same slot. (Yes, it only took one old episode of Fringe to get me to drop Heroes)