I don't know who this master is that Naraku is apparently "working" for; probably, it's just another poor soul manipulated by him. But Naraku's plan is brilliant! Everything was calculated, every detail, which is why he created a heroine with a tragic past. He is very clever. I hope Sango doesn't fall into his trap.
I had forgotten about Grandpa Flea! Many people who read it probably thought the same thing: "Look who's back, and I didn't even realize he was gone."