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1. Combine the raisins, prunes and cognac in a small bowl and set them aside to marinate at room temperature for at least 3 hours.
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2. If the cognac does not cover the fruit completely, stir gently from time to time to keep all the fruit well moistened.
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3. Pat the pieces of rabbit completely dry with paper towels and sprinkle them on all sides with the salt and a few grindings of pepper. In a heavy 4- to 4½-quart casserole, fry the diced bacon over moderate heat, stirring occasionally.
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4. When the dice are crisp and have rendered all their fat transfer them to paper towels with a slotted spoon.
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5. Pour off and discard all but about 3 tablespoons of the bacon fat and add 2 tablespoons of butter to the casserole.
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6. Melt the butter over high heat and brown the rabbit in the hot fat, a few pieces at a time, turning them frequently with tongs or a slotted spoon and regulating the heat so that they color richly and evenly without burning. As they brown, transfer the rabbit pieces to a plate.
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7. Pour off all but about 2 tablespoons of the fat remaining in the casserole and drop in the small white onions. Sliding the casserole back and forth frequently to roll the onions around, fry for about 8 minutes, or until they are golden brown. With a slotted spoon, transfer the onions to a separate plate.
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8. Stir 1 tablespoon of flour into the fat remaining in the casserole. Then pour in 1½ cups of the water and bring to a boil over high heat, stirring constantly with a rubber spatula and scraping in the brown particles that cling to the bottom and sides of the pan.
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9. Add the thyme and the reserved bacon dice. Return the pieces of rabbit and any liquid that has accumulated around them to the casserole. Turn the pieces about until they are thoroughly moistened.
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10. Reduce the heat to low and cover the casserole with both a sheet of foil and the casserole lid to seal it as tightly as possible.
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11. Simmer the rabbit for 1 hour. Then add the reserved onions and stir in the raisins, prunes and cognac. Simmer tightly covered for about 1 hour longer, or until the rabbit is tender and shows no resistance when pierced with the point of a small, sharp knife.
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12. With a slotted spoon, transfer the pieces of rabbit to a heated deep platter and arrange the onions, raisins and prunes attractively around it. Drape the platter loosely with aluminum foil to help keep the rabbit warm while you prepare the sauce.
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13. In a small enameled saucepan or skillet, bring the sugar and the remaining ¼ cup of water to a boil over high heat. Stirring constantly with a metal spoon, cook briskly, uncovered, until the syrup begins to caramelize and turns a golden tealike brown.
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14. Still stirring, pour in the red wine vinegar and gradually stir in about ½ cup of the liquid remaining in the casserole.
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15. Pour the entire contents of the saucepan or skillet back into the casserole and, still stirring constantly, simmer the sauce over low heat for one or two minutes. Taste the sauce for seasoning, then pour it over the rabbit and serve at once.
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