Hehe, yes it could potentially end badly. If you get into a fight with Oakstaff your chances of survival are incredibly low.
Treants are paragon tier monsters I believe, or at the very least high level heroic tier monsters.
The group had said they wanted to ensure Porpherio's safety from Ragnar's assassin. He has assured the group that Porpherio is in the safest place he can possibly be, the Water Palace. So he is not stalling you, he doesn't believe there is any cause for concern.
Other than that you have asked about Kalbon, Soryth's sidekick. He has told you what he knows.
Rain asked the direction to the Water Palace, the only detail he has not given you. The reason for this is because he does not believe there is any cause for concern. Wat has intimated he wanted to leave and see Porpherio/Orlando, which is, as far as Oakstaff is concerned, a challenge to his belief that Porpherio is safe. Shandra tried to turn that challenge into just making doubly sure of Porpherio's safety, but asked him another question, which also challenged his opinion, and no further explanation of what your purpose with Porpherio/Orlando is.
Form there Wat has retold the whole story, albeit with an annoyed tone. So there you hand narrative control back to me as to what Wat has said as no specifics were given.
Recap of your purpose (not sure if the group ever intended to do this): Ragnar has sent you to reach Orlando before the assassin he sent does and bring Orlando back to him. Shandra has been sent by Uma to do the same.
Apart from that you are collecting the leaf keys you need to enter the palace where Soryth is based to confront her.
And apart from that you are trying to free Orlando and Juliana and return them to their parents safe and sound and put an end to the conflict on behalf of Count Varis.