currently translating "Bloody Parrot" need some help...

Hey,
I am currently translating the novel "Blood Parrot" by Gu Long. I am Vietnamese and so I am translating the novel from a Vietnamese version. I have finished translating the first chapter and is about a third through the second. However, there is an aspect to the story that I am confused about. I am not sure if it is due to my miss-translation or my interpretations. So, before I post up my translation, I would appreciated if someone can read the first chapter of Blood Parrot and answer some questions I have in regards to the logic of the story.

My questions:
Why did the old man say that Vuong Phong was the one who killed him?
How does the fact that the old man's refusal to answer the above question leads to the telling of the story/myth about the blood parrot?
This transition was very unclear to me and I am pretty sure it was not intended by Gu Long.

Disclaimer:
I am semi-fluent in Vietnamese. I can speak it, read and write a little, but my vocabulary is very limited. Also, there are some words in Vietnamese whose origin is chinese so often times the definition for these words are not included in viet-english dictionaries. This makes for a very difficult translation of certain words and phrase.

P.s:
Kudos and thanks to all translators. I had no idea how time-consuming, painful, and f'ing HARD this is- and expensive too. Many hours and cups of starbuck I spent while translating this.