I've always imagined that the "Fog Ship" in S4 is the Pale Palace in S2, you know, the Blue Gate Rune spell. There's no evidence of this, except that they both are ships. I'd like to think that the Eternal City is located in the World of Emptiness, and that Mr. Fog is a creature created by the Sindar. Oh, and I really like to believe that sindarians are Yohn-ish creatures, which too come from the Empty World... however... this is nothing but a young man's dreams and wishes.
Let's look at the evidence. I've just played through the scene, and I'm going to quote some stuff...
The first thing the Cap'n says is:
"I am one who wanders a million worlds, and one who watches this world's fate from afar. Wilt thou come with me?" - This suggest that Mr. F travels all the dimensions and worlds in the Suikoden universe, but that he doesn't really have anything to do with the world we know. He's just a voyer. : P
Later on, he continues:
"Part with me from this forsaken world. Come with me upon this ship, where time governs us not. Define not thine own fate. I have come for thee. Do not let my journey be for naught. This world too shall end someday. Come... be eternal." - Here, he suggests that he indeed travels the world via the ship, that he surpasses time and that he must have travelled for some time. Oh, and he tries to tempt or Lazlo. "Come with me, I have cookies."
Know, Lazlo musters up, steps forth, and says either of these two: "I don't want to stay here for all my life!" or "If I stay here, my life will never end?" - We are good people, we wont stay on the ship. I mean, it's filled with monsters, and the only light comes from Ted's torch and Mr. F's big, glowing, evil eyes.
Ted steps forward and says something about seizing his fate ONE MORE TIME. This could suggest that Ted hasn't always been within the Fog Ship (we know that), but that he possibly could have been involved in something bigger once before. He continues saying: "So, will you return that Rune to me? That cursed Rune? The Soul Eater!" - Uh! Ted has handed over his Rune once to the evil creature, and now he wants it back.
Mr. F is angry. Like hell he will give the Rune back. He also says that he took Ted in.
Battle! Fire and lightning hails from the sky while swords slash against the unholy enemy... well, I beat it. Btw, in this battle, the Fog Ship Guide actually uses spells from the Souleater Rune.
After the battle, Foggy transfers the Rune. Teddy goes: "Souleater... I will not... run away... anymore." - Uhhh! Ted has tried to escape his fate as the host of the Souleater?
Then, Leknaat appears. She always have to steal the light, huh? Foggy's like: "You... the Executor of Balance." - He most definately knows big L.
Are you ready, coz' here it comes. Leknaat says: "Oh Guide, return quietly now... to the city of Eternity... where your brethren live... Do not take those who do not wish it." - There is no doubt that this suggests that whoever lives in this Eternal City (which supposedly is the sindarians haven) is his brothers live. I'd say he deffinately is a sindar then (to my suprise too).
Foggy goes on talking bout revenge. Getting revenge against "this world." and "chaos." Until then, I must gather strength. This makes him sound like a super duper bad guy. Maybe he returns later as an ultimate villain. What... or who is this Chaos thing anyway? Yuber would be my first guess.
Leknaat goes: "I am sorry, but that was not the role that was given to you." - Hmm... this sounds very deep. Could the sindarians be plotting to end Suiko? I wonder. And who exactly gives these roles?
Then, the Souleater Rune shines, and Foggy disintegrates. Leknaat then says that the Souleater never must disappear from this world. I guess not, since it governs over life and death and all that. She then goes: "Reaccepting the Rune from which he has distanced himself for so long has shown me just how determined a human can be." - I dunno what to think of this. Sounds like this is where Leknaat actually decides to help the humans a little, although she has helped out Lazlo already. She continues: "As for the end of the world? You need not worry. No one should be concerned of such a thing right now." - I guess big L tells us that the Ashen Future actually will come one day. Too sad. She then says some moralboosting words (I guess she needed to, since she has just told our hero that the world is gonna end).
The ships start to rumble, and Lino starts to feel that there's something wrong with the big misty, evil ship that appeared out of nowhere. He's a little slow. Then, Ted says: "The captain has no physical form. What you just saw was created out of magic... hmm?" - The captain has no physical form... that means that sindars have no physical form, or what? He continues saying the ship might also be some kind of illusion. There goes my theory about the Pale Palace. Oh, bummer.
In the end, the ship vanish into thin air.
To sum up the points that are important for this threat. Leknaat, who is indeed familiar with Foggy, says that he should go back to the City of Eternity where he may be together with his brethren, meaning, that if the City of Eternity truly is the city of sindarians, he is one of them.
Furthermor, Ted tells that the captain has no real form, meaning that sindarians definately not look like black, evil, one-armed shrimps.
That's all. Thanks for reading. Hope you all find it helpful.
"Everytime you try to drag real life physics into a fantasy setting, God kills a catgirl!" - Please, think of the catgirls!