Why was Daniel Faraday crying?

Now that we know a little more about Daniel, and that the show involves time travel, I've been thinking more about the episode "Confirmed Dead". If you remember, in a flashback during that episode, we saw Daniel watching footage of the faked Flight 815 crash on TV, and he was crying.

I have two questions about this, let's see if we can come up with some answers together.

First off, why was he crying? Did he know someone on the original flight, and think that they died? If so, who could that be?

Now that we know that Daniel ends up time traveling, however, I think it's more likely that he's crying because of what's ABOUT to happen. As I mentioned before, I think the notebook that he carries around is from the future, and at some point we'll see a future, older Daniel hand the notebook to a young Daniel. That's why Daniel has to keep checking it, because he hasn't written it yet. So, maybe the notebook tells him that Charlotte is going to die on the island, and that's why he's crying. He sees the wreck and knows that a certain chain of events are about to begin.

Or, maybe he's crying because he already works for Widmore and he knows that the flight was faked, and that people were murdered in order to fake it. Or, maybe he's been searching for the island for a while and thought he had a lead with Flight 815, and was crying because his research was in vain. Research that he was hoping would cure his time-stuck girlfriend Theresa, the one Desmond saw in a coma in the episode "Jughead". What do you guys think?

Secondly, who was the woman that consoled him as he was crying? Was it Theresa, pre-time coma? Or was it Charlotte herself?

Oddly enough, the mystery woman was referred to in the "enhanced episode" notes as Daniel's "Caretaker". And, she is putting a blanket on him as he cries, a very caretaker-like action. Could Daniel have experimented on himself and caused himself to start skipping in time, landing himself in a mental home? And is he crying because he's seeing stuff from the future, maybe even Charlotte's death?

Could be lots of things, I guess. Thoughts?