Nathan, I think that there have been some changes to some of the townspeople dialog that might have inadvertently removed the "rumors" section of code. You should take a look at that, as these people don't make the same kinds of comments anymore.
Yes, I'm working on a fix on this but have become rather busy lately - and also stumped by a frustrating lack of response from any quest check I try to put into the dialog... Just have not had much time to bugchase lately, so this code has been in a holding pattern for a bit.
I can pass it along to anyone who wants to finish it, if you wish. I wrote the dialog and just wanted to make some quest checks in it that will prevent the character you talk to to mention the animists unless you've already talked to Inez, and also that when you finish talking to him, that he doesn't bring up the subject again.
Basically the clue offered is that Inez tells you, and so does your quest book, that someone has been killed ON THE BEACH by the Animists. Then Nathaniel in the quest book muses that he should talk to the pirates out at the pier... When you do, you end up talking to Terry Snider (the black pirate), and he tells you about his brother being killed and sends you on your way to talk to the priest.
Sorry it's not finished; I've just become quite busy... <img src="http://www.piratesahoy.com/forum/style_emoticons/<#EMO_DIR#>/urgh.gif" style="vertical-align:middle" emoid=":urgh" border="0" alt="urgh.gif" />