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::throws hands up in the air:: I give up on trying to figure Fai out until we leave Celes. Seriously, I really can't read this part in single chapters at a time. I'll probably have to go back and reread it all at once. sweatdrop

Oh, well, the answer to this I actually know. sweatdrop
Kurogane and Fai are fighting because Fai is trying to protect Ashura, and Kurogane is trying to destroy the illusion Ashura is creating (and knock some sense into Fai).
It works.
Little Fai is in between them because Kurogane is slicing him in half, killing the illusion of him being there. Our Fai is horrified until Kurogane grabs him and pushes his face into the floor so he will stop watching the memories Ashura is showing them. He points out that Fai's memories are inconsistent. The tattoo on Fai's back was supposed to keep his magical powers from growing, but why the heck would Fai want that? If his magical powers got stronger, there wouldn't be anyone stronger than him, and then he wouldn't have to kill anyone. He points out that Ashura has been fooling him this whole time, and had supressed the memory of why he got the tattoo so he wouldn't ask questions. In reality, it appears Ashura gave him the tattoo so he wouldn't get stronger and Ashura would remain stronger than him, so when the time came and he lost his mind, Fai would be able to "grant his wish" and kill him.
Did that make sense? I hope I didn't confuse you! sweatdrop
The main points are:
1) Kuro and Fai are fighting because Kurogane is trying to kill little Fai and show our Fai everything is an illusion, but Fai thinks he's after Ashura, which is why he's fighting back.
2) Kuro slices little Fai in half, breaking the illusion.
3) Kuro tells Fai that his memories have been suppressed so he wont remember that the tattoo is actually doing him more harm than good.
4) Ashura wants to die.

Oh ya umm... MUFFINS!!!! domokun domokun sweatdrop

Thanks retice! That actually helped a lot ^_^

The memories Ashura keeps showing and little Fai are illusions, I believe, because Kurogane breaks through them like glass. The individual shards begin showing different memories, and after Kurogane pushes Fai's face into the floor, Fai reaches out and watches one of them. I think initially Fai felt as if he were reliving those horrible moments all over again for real, which is why Kurogane felt the need to break the wall apart and bring him back down to earth.
I'm pretty sure the twin was an illusion because Kurogane slices him in half (which is something even Kurogane would never be heartless enough to do if the body was legit) and instead of crumpling into a bleeding heap, it seems to break off into shards of glass like the memories did.
And another significant thing about the chapter is, Kurogane actually yells at Ashura "Get this farce over with!" meaning "Stop lying!"
It seems that Ashura was just using the little Fai to freak our Fai out, and then pummel him with the terrible memories until he couldn't see reason. That's what I thought was happening. neutral

Unfortunately, CLAMP is taking a three week break.

::grins:: So I wonder if this makes Hideki Fai's daddy? Ohmygod, that's such a cute image, with mama!Chii and papa!Hideki cooing over their twin sons. Cue the "aww"s!
Well, you know, "aww"s from those who aren't completely horrified over the sinking of their ship that is. blaugh
Seriously, I wanna see fanart of that!