I spoke with the grave digger (begger) and he is the one that told me to go the bridge district... I have searched everywhere.. is there another place I should go? Is there a certain time frame? (I did find a random battle while wandering the grave district several days before I finished the graveyard quests, and Sith and two shadow theives attacked me, I got some note..)

I think those notes from dead shadow thieves are for information purposes only.

As for the "bury alive" quest, the guy in red should be standing near one of the houses on the far left side of the map, facing the water. His location is close to 2 other IMPORTANT locations.

Two other IMportant Locations? Am I missing something something IMPORTANT? You can spoil me at this point as I am so lost it isn't even funny. Oh and This is the Bridge district? Water on the left hand side?

SPOILERS:
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2 IMPORTANT LOCATIONS:
1) Door that leads to the another body part of Kangaxx (torso, I believe).
2) Twisted Ruins
Both of the above doors are located in the same building, and according to my experiences, the house west of this one is where those "bury alive" guys are hiding. The guy in red should be standing in the gap between these two houses and they are all next to the water side.

Well I am not close to Kangraxx or Twisted ruin, but thanks for your help. I off to Scour the waters edge AGAIN!.. I may just end up fireballing everything in place...