Wow, that was quick!

 

Yes twyngwyn, that's right.

 

sheep  =  ram

iron clad  =  fe (chemical symbol for iron) around ram  =  f-ram-e

set up = frame

 

over to you for the next one 

suggest indeed, and set down (9 letters)

Deposited?

yes.....posit = suggest...put inside deed...set down = deposited

It is taken in by little Edward twice and corrected prior to release.

1 word 6 letters

Ya got it!, twyngwyn

corrected prior to release = edited.

little Edward twice = ed + ed

it is taken in = ed + it + ed = edited. 

cold chocolate possibly on xmas tree (9 letters)

same answer, another clue:

 

ice crystals shed skin