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Well they failed to kill the Oni, only succeeding in chasing it off so they could loot it's lair so they could find a sword to give to a Ronin (That dead guy) so that he would sneak them over the border into the Earth Clan's territory.

Yes, they burnt down Yume's shrine and convinced her that Oni did it, so now the miko is wandering with the party. when they got to a real sized city, dover killed an Earth Clan samurai, which cheesed off his relatives.
They hired a 4 man team of halfling ninjas to kill him (Which they did without even taking a single hit. kusari Gamas and Poison's a b***h.)
Yume managed to convince her friends at the nearest shrine to res him and he angrily took off to kill the Samurai's immediate relations. The Samurai's dad, an honorable warrior, had no part in the ninja attack, but took responsibility for his kin's actions and subsequently killed dover in a one on one fight. (He was a fifth level, non gestalted NPC)
Moe didn't do too much, still struggling with the language barrier as it was.

Lets see...we should be about seventh level. Though we made Moe have to wait in order to learn it and not being able to know it simply by leveling up. It takes time to learn a language.
Also, that Oni they chased off? He's now CR 12, an NPC, and he's out for revenge, especially against you. He already burnt down a village and got it blamed on you, so now you guys have a 15 koku price on your head.

No, because Comprehend languages is a cheating tool, not a learning tool.
You have to learn it the old fashioned way, though being a Bard, you learn the lang faster than Moe.
And the Ronin who's in your party also speaks Eastern and Western, due to his status as having once been a high ranking samurai in his clan.
Now, its not unbalancing for Dover to be the diplomat. Having one pc translate for a group is not uncommon.
Any who, have you given any thought to being a proffessional geisha?

Ok, now you're sounding like a little b***h.
I already said that you'll learn it faster than Moe, and that I have an NPC translator for you so that you dont have to route your answers through Dover.
You're just acting pissy because you dont like how Dover warps your words.
At least Moe is having fun with the language barrier challenge. He can at least get the gist of Nipponese script.
Now, would it kill you to lighten up and enjoy the fact that Dover's Nodachi wielding dutchman got his s**t rocked by a squad of hobbit shinobi?

Yes. I allowed that same option for Moe as well.

And to be honest, the most important thing you missed was a cutscene. Ive been having your character participate in conversations, but its somewhat difficult to throw you in combat when i dont have your sheet.

My bet is that he wont live past saturday.
Oh and by the way, you might find this an interesting precurssor of things to come when you get to the Earth Clan: http://www.youtube.com/watch?v=KiorU5jYdLc

By the way, is their any goals that your character wishes to accomplish while in the east?
Since the Dutchman died, we've been kind of at a loss as to our group's direction.

Well Yume is still utterly focused upon serving you because of her ingrained belief in elven superiority. She even struggles to speak your language.
The Ronin however is interested in you only because he wants to tap that.
He's something of a rogue that way.

Yes. assume that becuase Speak languages is a class skill for you that you already know the language since you've had exposure to the language through Yume's efforts at communication with you.