I'm guessing the robed figure behind Deep Dungeon Edda is Paiyo Reiyo. After his failure at Tam Tara I'm sure he started to turn evil. Getting kidnapped by Edda probably sped up his plans as he had a host to control for his evil purposes. I'm still working on this theory but the #1 reason this is most likely the case is that he's a Lalafell and therefore 99.9% certain to be evil.