When he was walking up, the cursor lit up red crosshairs, so I just assumed he was a random encounter (enemy). Then later on, I noticed the cursor turning into red crosshairs on Jathil, too, so I am thinking it was a game flaw? Does the Shrew do anything for me later on, is he important?

Shrew is the third quest from the Bushi Dojo in Ishad N'ha. Your cursor will be red for enemies and unidentified "friendly" NPCs.

Rick

Thanks for the response. After a reload, however, I went back up there to see what he had to say, but he just wants to attack me, and I don't have anyone in the Bushi Guild anyways . . . so I think I will just send him to meet 'ole Scabban and Haleabus.