Cyric adds to Dairlen's response. "Do we know if this, 'New Water' is some sort of magical anomaly of some kind? A mixing of the planes? If that is the case, what is the bet that these insects are some form of abberration?" He looks up at the man. "I would be very surprised if a 'remove disease' or maybe a 'remove curse' spell didn't cure your ailment Friend, depending on your condition.
Once you're cleaned up, we'll get you on a boat out of here and then you should probably try to send word to even more experienced adventurers than you. Maybe find a powerful wizard or psion and exchange your memories with them in exchange for a memory wipe as i said before?"
Cyric makes a friendly shrug in the mans direction. "The only thing terrifying about these things compared to, say, a dragon is that we do not know what it is that they are, so their powers or abilities and the way in which they interact with us in an unknown. You are frightened not just because you have seen some strange and horrible things, but because it has never been seen until NOW."
Cyric turns to his companions "Do any of you have a vial in which we can put the remains of this bug?" He brandishes the bug guts on his scythe in front of them. "I'm sure Aric would like a look at this. Perhaps a detection spell to determine the nature of the remains... As a precaution I think we need to treat the half-dragon as if infected too and possibly the warforged body." With that, Cyric continues watching for bugs.