After more research, I now suspect the reaction chain of Fe in HClO is as follows:
Fe + HClO --> FeO + HCl
HCl + HClO <--> Cl2 + H20
Hence, the observed chlorine creation. Continuing:
2 FeO + HClO + 3 H2O --> HCl + 2 Fe(OH)3
This is the oxidation of Ferrous Oxide mentioned in the extract (see below) from Mellor. Continuing with a hypothetical reaction:
Fe(OH)3 + 3 HClO --> Fe(OCl)3 + 3 H20
And, possibly an immediate reaction is that the Fe(OCl)3 oxides more iron and decomposes:
Fe(OCl)3 + 2 Fe --> Fe2O3 + FeCl3
Normally (per Mellor), the reaction of HClO on a metal oxide is a suggested path to creating the metal hypochlorite. Apparently, however, Iron hypochlorite either does not exist or immediately decomposes (as I have proposed above with further oxidation). Interestingly, my speculated behaves parallels the properties of Aluminum Hypochlorite (albeit slightly more stable) which upon contact with a fabric, for example, bleaches and then immediately decomposes with deposits of Al2O3 into the fabric itself.
Note, as the solution clearly becomes reddish brown, it is FeCl3 that forms and not FeCl2 which is yellow in aqueous solutions.
REFERENCE: "A comprehensive treatise on inorganic and theoretical chemistry, Volume 2 By Joseph William Mellor
"Iron filings immediately decompose hypochlorous acid with a brisk effervescence produced by the evolution of chlorine; the iron is partly oxidized and in part dissolved as chloride without the formation of any chlorate. A. J. Balard commented on this: "The greater number of other metallic substances do not decompose hypochlorous acid, and I am yet entirely ignorant of the cause of the peculiar behaviour of iron." P. Grouvelle passed chlorine through water with iron hydroxidelin suspension and a bleaching liquid along with ferric chloride was produced, and he found the liquid retained its bleaching properties after boiling for a quarter of an hour; but A. J. Balard failed to confirm this statement; he could not make ferric hypochlorite either (i) by the action of hypochlorous acid on iron hydroxide, for hypochlorous acid does not dissolve ferric oxide; or (ii) by the action of calcium hypochlorite on ferric sulphate, for calcium sulphate and ferric oxide are produced. Hence, adds A. J. Balard, "ferric hypochlorite cannot exist;" the results by P. Grouvelle are due to the formation of ferric chloride and hypochlorous acid in dil. soln.; when the mixture was heated, a portion of the acid distilled off, and the reaction which occurred with the cold soln. was reversed, for ferric oxide and chlorine were formed. Ferrous oxide is oxidized to ferric oxide by hypochlorous acid."
A free google book. Link: http://books.google.com/books?pg=PA275&lpg=PA275&dq=ferric+hypochlorite&sig=zHHdZcLpiC-8m8HCOj-kix87YZ4&ei=11P7TcXXMdHTgQepiZneCw&ct=result&sqi=2&id=7XoGAQAAIAAJ&ots=R0bAIgamIM#v=onepage&q=ferric%20hypochlorite&f=false