Great movie, and about Nazo...
This movie, as well as the first half, are perhaps the best looking Sonic Flashes I've ever seen. Your style was beautiful, the sound was great, and everything ran smoothly. Keep up the good work!
And about this Nazo character... If you're a sonic fan, I'm sure you're watching the news on the new next gen Sonic game. If you have, you might have seen Silver the Hedgehog. After looking at pictures of both of them side by side, I can guess that "Nazo" might actually be Silver.
If it isn't Silver, then it could possibly be "Hyper Sonic". Anyone who's played Sonic 3 and Knuckles knows you can get the Hyper Emeralds after collecting the Chaos Emeralds. "Hyper Sonic" was a whiteish-blue and flashed similar to an invincible star from the Mario Games. Also, "Nazo" has green eyes, just like sonic does, which adds evidence to the claim.
Either way, this was an excellent flash movie, and I can't wait to see it concluded. Untill then, keep up the good work!