In episode 3 it's says the Battle of Finow took place in 1944 in Germany. Maybe a HYDRA experiment but they seem to be dealing with Levitation on this show instead.
One quibble about this episode. If Jarvis was in on it why didn't he looks through the crates of the Bad Babies when they found them and retrieve the blood sample? I'll have to watch again to see if he had any time alone after the phone call and the fight and the police showing up.
you know that name bothers me: "Levitation"
Could it be in a reference to the Cloak of Levitation possessed by Dr. Strange?
http://en.wikipedia.org/wiki/Cloak_of_Levitation