Come now the second part is not only my fault it's everyone's. As for characters Cain is wandering around town and if you were near those suspicious characters that means your near Mutsu. Simply bump into the guy or both guys and do SOME talking. Granted I'm more or less free to make up characters but so are you. Here's three or more ideas off the top of my head that don't revolve around interacting with anyone in the crew. 

Selling your wares
Finding more contacts to sell with: You're in the middle of a capital city festival.
Enjoy the festival it's pretty much the typical Japanese type festival
Getting into the brawl.
Getting drunk at the pub with an npc of whatever choosing you like or want to make