I hate this story. I just wrote something at first and I hadn't even thought of the plot and why Makarov was behaving as he does and so on. Well, I had thought of that mountain and that it will be spirits there but nothing more. I later on thought about it, when I came to the right chapter ;D But I'm not continuing it and never will. But I can say some things (that I have figured out) about the plot.
The relva souls both consist of good and evil souls. The leader for the good ones where the one Natsu saw in his dream and the leader of the evil ones was the one the leader of the good ones warned Natsu about ;D Igneel and Natsu visited that mountain when they were small and Natsu met the souls. But it was erased from his mind when they left.
Oh, and the reason I haven't updated for a while was because I was busy and lazy, very lazy ;D But see you some other time! :)