  Reverberation lags in AGN were first discovered in the NLS1 galaxy,
1H0707-495. We present a follow-up analysis using 1.3 Ms of data, which allows
for the closest ever look at the reverberation signature of this remarkable
source. We confirm previous findings of a hard lag of ~100 seconds at
frequencies v ~ [0.5 - 4] e-4 Hz, and a soft lag of ~30 seconds at higher
frequencies, v ~ [0.6 - 3] e-3 Hz. These two frequency domains clearly show
different energy dependences in their lag spectra. We also find evidence for a
signature from the broad Fe K line in the high frequency lag spectrum. We use
Monte Carlo simulations to show how the lag and coherence measurements respond
to the addition of Poisson noise and to dilution by other components. With our
better understanding of these effects on the lag, we show that the lag-energy
spectra can be modelled with a scenario in which low frequency hard lags are
produced by a compact corona responding to accretion rate fluctuations
propagating through an optically thick accretion disc, and the high frequency
soft lags are produced by short light-travel delay associated with reflection
of coronal power-law photons off the disc.
