That guy is definitely a Tezuka villain if I ever saw one....
Just as the first two episodes dealt with Hyakkimaru's origin story, in this episode we get some background on Dororo's parents, and the situation that led to him becoming an orphan.
This episode has been long delayed due to some minor technical problems. One thing we're hoping will speed things up (somewhat) is that from now on I will be releasing my own encodes of the episodes as they are finished (with the usual fonts that I use), and the folks at Hi no Tori Fansubs will be releasing a separate encode (with their fonts and including a splash page). Without getting into boring technical details, the differences in our encoding methods led to repeated situations where I would ask them to re-encode an episode several times if on-screen text appeared one frame too early or too late, and it's simply easier for me to fix tiny problems like that on my own.
I'm still very happy with the partnership between TSHS and Hi no Tori, and we even have some other possible joint projects in the works after Dororo is completed.
[Series now licensed by Anime Sols, links removed.]