Nicholas was Victoria in a past life, that is correct.
During the last song, Finally Free, the first verse (Friday evening) is the miracle talking about covering up the murder; the second verse (Friday afternoon) is Victoria talking about getting back together with the Sleeper. Then you hear the murder during the next part, and the last chorus is back to Nicholas again, who goes home and watches the news. Then the hypnotherapist, who was the Miracle in his past life, comes in and shoots Nicholas for some reason, I guess because he was still mad at Victoria or something.
Yeah I found this confusing too. Good song though.