Peter & the Mouse? - Spoilers!!!

I watch TBOD every year (The original 6 part version) and something always bugs me. In Episode 2 When Kay first encounters the mouse they act as though they already know each other, Also Kay doesent seem to be too alarmed at the concept of talking animals in general!. Then later in Episode 3 Kay is talking to Peter and he says "You heard Abner Brown say he liked her style" The only people to hear that conversation was Kay & The Mouse.
Now considering how the story ends it could be possible that these things are clues to the fact the Kay is dreaming and everything is a bit muddled however the way these things are directed it looks more like the episodes overran and sections were edited out.
Does anyone have any info about any of this?