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This sentence sounds a little strange to me.


I would say
"She said that she had seen him 2 days ago."
or
"She said that she had seen him 2 days before he left."

Sentence 1 says that "In the past, I frequented the shops. Now I do not."

Sentence 2 does not make sense to me. It sounds like a fragment and needs to be connected with another sentence.
For...

You can also say
Not long ago, before I was punched in the face, I began Karate lessons.

The meaning may be slightly different though. I cannot explain the difference.

You are exactly right. :D

The bus came on time = The bus came according to the schedule.
The bus came in time = The bus came so that we were not late getting to our destination. No specific...