Gracielo is one of the characters who has a more developed personality and storyline. (The other notable one is Adelina.) Although I don't really like him, I like the plot involved in his quests. I wish more characters have developed story lines, instead of just "feed-him-50-MP-and-grind-him-to-vet" approach for the recent drug-addicted characters. This is a summary of what happened. For the actual quest guide, see Wiki of the New World.
Gracielo is a young punk who came to the New World in the same ship as the family. After arriving in Coimbra, he bummed around until the family came over and fed him some bread, milk, and chocolate. Thereafter, he made a scene in Camille's shop, forcing the girl to employ him. (Aggressive job interview...) The family defeated him, with some help from Hippolite, Camille's brother. Gracielo then joined the family.
After joining the family for some time, Gracielo started to loiter in Coimbra and beat up some thugs at the observatory platform. After being provoked by Camille, he challenged the combat squads of Reboldeaux and Coimbra, accidentally killing Hippolite, the Coimbra Combat Instructor.
His apologies were rejected by Camille. After beating up a few more thugs (what's his problem, man...), Gracielo's guilt eventually brought him to Hippolite's grave, located at the cemetery in Thueringenwald.
While he was feeling sorry for himself, Fritz (one of the ten nobles) showed up and started quoting Yoda, thinking it was original and totally cool. The old fart then invited Gracielo to seek him out in Porto Bello Deserted Quay...
Hate leads to suffering, you noob Yoda-wannabe!
To be continued...