Thank you for your reply,
One last thing that may looking strange I forgot is if you play without talking to the cloaked stranger you can see him still on the other location, so it's like he is at various position at the same time
Oh yeah? Good catch, thanks again.
Also, the stranger is a she. It's actually an astral projection of the Ringmaster's assistant at the circus in your world. She uses the cloaked avatar to help guide you so that you bring the magic instrument back to her, so she can use it on the evil wizard/demon. She was the Princess of that land, hence why her father (the Shah/King) appears beside her as a ghost at the end :D