Walace the Sushi seemed to be there merely to mention the werewolf problem in the Halloween event during the Halloween 2009 event. His only action currently is tell people Ricobabie about the idea there is a new enemy, which is rather pointless.
He is right by the Inn siting on a rock.
WALLACE: Hello my name is Wallace, the Sushi. Welcome to the town of Mawright and the alpha for Realm of the Rice Cake.
-Enemies WALLACE: Recently the Werewolves have been attacking the town. Go west and find their leader.
WALLACE: Ricobabie is the Queen of Mawridge, but she's been acting strange lately... People think there's a new enemy.
-Done ENDS CONVERSATION