It's still 1840, according to Grayson's VO.
The voiceovers always say the same year even after events in the various time travel storylines clearly indicate the year has changed. Why? Who knows? The writers probably didn't even know.
Changing the subject, I love the look Julia Collins shoots Kendrick very near the end of her scene with him when he insists that his sister would have been at the Inn unless something had happened to her and he's determined to find out what did:
Also, back in '96 a commercial ran on the Sci-Fi Channel during this ep with KLS promoting MPI's 30th Anniversary Tribute VHS tape: