I think you'd benefit greatly from simply watching those scenes again.
#1: Angier trapped and kidnapped Mr. Fallon (Borden's engineer) by luring him to an abandoned building, where Fallon next fell through the sabotaged steps of the stairs, right into a wooden box, which Angier and Cutter (who were already waiting there in the basement) immediately shut closed. Fallon reacted to this by shooting a hole through the box with his gun, and the bullet hit Cutter in the arm/shoulder. Cutter winces, and shouts: "Fine! That saves me from cutting you an airhole!"
(Here's what we saw happening previously in the scene: Right after a show, instead of stepping into his carriage Borden decides to take a walk through the city. Angier, with his crippled leg, had been staking out the theatre's exit and is following him from a distance. In turn, Fallon is following Angier and Borden. Suddenly, instead of continuing to follow Borden, Angier sneaks into a dark alley. Fallon is puzzled about this and, instead of keeping his eye on Borden to make sure Borden is safe and alright, he too sneaks into the alley and walks into the building that Angier went into. In the building there's a flight of stairs, but when Fallon ascends them he falls right through them, into a wooden box in the basement. It was a trap, laid out by Angier.)
#2: I don't remember any snow. It was in England, not in America (so no, it wasn't outside Tesla's laboratory). Borden was meeting Angier because he wanted his kidnapped engineer (Mr. Fallon) back. In exchange for Fallon, Angier wants to have Borden's secret; that's why Borden gives him the keyword to his notebook. In the meanwhile, Fallon was buried underground inside the box that he was trapped in. (That's why Borden screams "Fallon! Fallon!" while digging to free Fallon.)
Now watch the movie again, and knowing the above and how the movie ends, you can start figuring out the second layer of what was really going on during those scenes.
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Joe Satriani - "Always With Me, Always With You"
http://youtu.be/VI57QHL6ge0
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