Also, in which world did the party fight Garai at Isle of the Damned? I don't remember... if it was in Another, it would explain why Garai's ghost still appears when the party fights Dario in Home.
You might want to read this if you haven't:
Let me summarize the order of events surrounding the Masamune:
Masamune, one way or another, is filled with enmity, and ends up in El Nido.
It's first found at Divine Dragon Falls (Home World), by Garai and Radius.
Radius becomes possessed by the enmity of the sword, and kills Garai, letting lose his secret inhibition of being jealous of the man for always being a better swordsman than he.
Garai is buried on the Isle of the Damned (Home World) before it was infested with monsters. (We know this is Home World's course of events, because Garai's grave is only on the Isle of the Damned in Home World).
Chances are, Garai's vengeance attracted demons and made it the nesting ground of demons that it is today. The Masamune teleports to the Isle of the Damned to take advantage of its previous victim's enmity (Garai's enmity).
Eventually, Karsh and Dario make an expedition to the Isle of the Damned (Another World), and Dario finds the sword, and is possessed by Garai's enmity (we see the ghost of a giant man in armor wielding two swords, clearly Garai, behind Dario); Garai's enmity crossed dimensions from Home World's Damned Isle to Another World's Damned Isle. Karsh kills Dario in effort to protect himself. (This sequence of events happened in Another World, when the Dragoons didn't go to the Dead Sea/Sea of Eden; we know this because they're still alive, while we see them frozen in the Dead Sea of Home World).
The Masamune is further filled with the enmity of another victim: Dario.
However, Dario is still alive in Home World, because Karsh went to the Dead Sea with the other dragoons, didn't kill Dario, and Dario ended up on the forgotten island.
However, Dario's enmity crosses the dimensions from Another World to Home World, and again, the Masamune appears before one of its previous victims to smite some people, and thus obtain further enmity from their fallen bodies. Again, we see the ghost of the armored giant with two swords (Garai) appear behind Dario.
Of course, eventually we defeat Dario, and the sword is freed from enmity. (Though, if you ask me, defeating the wielder of the cursed Masamune would only further fill the sword with resentment, for being defeated).
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Zaper, I can't believe that you don't think the ghost is Garai. The ghost clearly resembles Garai just as he looks when we fought him. Who else would the ghost be, and why else would it appear, if it wasn't Garai's ghost?
Your "character model re-use" theory simply flies in the face of all evidence. Yeah, they re-used Garai's character model because it was supposed to be Garai, not because they thought it would look cool to have it appear again in conjunction with the Masamune.
