Hmmm....let me think. My memory's also a bit blurry about that part. Have you found the village elder yet? He's at the highest house of the village. I thought he redirected you to the big lake beyond the village after that, where you meet a prophet who tells you about the situation in Kamui.
And the game itself is probably the funnest and most memorable game I've ever played. I enjoyed it way more than any o the Zelda's, and that says alot. The gameplay, style, story and humor are just unrivaled. Fave game of all time, right next to Paper Mario & the Thousand Year Door (my second favorite game of all time).
I love this game to bits, and I can't wait for the DS sequel!