I've never heard that one. I think you're referring to the still-highly controversial "Inflation Theory", where, for an near infinitely brief instant in the very beginning, the universe expanded many times faster than the speed of light. This it could theoretically do because it wouldn't involve an object actually traveling *through* space faster than light, which is strictly forbidden in Einstein's theory, but rather space itself "stretching".
Right. Space itself was stretching. It may be that we can only ever see a small part of the total universe, because past a point the rest of the universe is stretching away faster than light can traverse the distance.
One photon/wave form relative to another would have exceeded the speed of light from each observers perspective, yeah. Space time stretched faster than photons travel in a vacuum so the photons were frame dragged relative to each other ftl essentially moving them ftl as compare to each other from their perspectives or from a third perspective though never exceeding ftl from their own perspective.