We now know beyond a doubt that Demandred is NOT Taim or he would have recognized Damer Flinn. So what has Demandred been up to? Nobody ever seems to give it thought past "Is he Taim?". So, lemme have a crack at it!

In Lord of Chaos, Sammael and Graendal meet at her place in Arad Doman. (Lord of Chaos, Threads Woven of Shadow, paperback page 179):

"Events to the south had Demandred's mark all over them. Demandred had always liked using proxies. 'Tell him to be careful. I won't have him or his friends interfering in my plans.' Perhaps he could direct al'Thor's attention there that would likely put an end to him. If other means did not work. 'So long as they steer clear of me, his lackeys can carve out what he wants, but they will steer clear or he will answer for it.'"

This would indicate that the events in question are either to the south of Graendal's place, or to the south of where Sammael came from. Since we know Sammael was holed up in Illian, that means the south of Graendal's (she is in Arad Doman). SO, events to the south could include (with a slight bit of geographical leeway) Falme, Emond's Field, Tanchico, Ghealdan, Amadicia or MAYBE Altara. Also, just in case they refer to The South being the entire southern coast, we'll throw in Illian and Tear.

Ok, let's whittle the list down. Nothing in Ebou Dar has even happened yet, and it wouldn't be Illian, Sammael's home turf or he would have said. If it had been Tear I think he would have said to the east or just 'Tear'. We also know that Falme was all about Ishamael and the Seanchan* unless Demandred has something to do with them, which I really doubt, this excludes Falme.

* -- Side note: although I believe Demandred has nothing to do with the Seanchan, the same cannot be said for Semirhage. She is Anath. (see "Semirhage is Anath" by Yurian Stonebow)

I don't think that Demandred had anything to do with the goings-on in Tanchico, either......surely Moghedian would have known about that, given her habit of spying on everyone (yes, yes.....from the shadows).

So what's that leave us with? Emond's Field, Ghealdan, and Amadicia. In Amadicia, I don't think anything of vast importance has gone on by this time in Lord of Chaos Pedron Nial is still pulling all the Whitecloaks in from everywhere (and we know he isn't Demandred or under his control, either, simply by the segments in his perspective). This leaves us with Emond's Field and Ghealdan, home of The Prophet.

I think it is quite possible that Demandred sent Isam and Trollocs to ravage Emond's Field in order to draw Rand there......seems like a decent strategy to me, and Demandred IS a great general. Whether he ordered this attack on Rand's home or not is merely icing on the cake.

I believe that Demandred is controlling Masema, The Prophet. I say he's controlling, not is, becasue I don't think Demandred has the time, patience or self-restraint to play the role of The Prophet. Besides, this is the sort of surrogate that Sammael was talking about in LOC when he said Demandred liked using proxies. Sammael just wanted the Prophet's followers to stay away from him.Think about it: Demandred now has an army of rabble to do what he wants, and everything they do causes chaos and gives Rand a bad name. When Nynaeve meets with Masema in Lord of Chaos, she thinks that he is crazy and seems to be looking and listening to someone or something thats not really there. (The Fires of Heaven, Encounters in Somara, paperback page 618):

" 'Tear.' Masema took his hands away, and she surreptitiously rubbed her arms. She did not have to try hiding it, though he was staring at something beyond sight again. 'Yes, I have heard.' Speaking to something beyond sight, too, or to himself. 'When Amadicia has come to the Lord Dragon as Ghealdan has, I will lead the people to Tear, to bask in the radiance of the Lord Dragon.' "

Could Demandred be in the room, using Saidin so that only Masema can see and hear him? I'm sure there's a way to invert weaves or whatever so that nobody but who you choose can see or hear you Rand marked the spot where he buried Callandor outside Far Madding so he would see a shaft of light but nobody (including Asha'man) would see it or even notice anything if they were right next to it.

This would explain why Masema was adament about not using the One Power to reach Rand, but then said they would use it to Travel to find Faile. Demandred has some scheme brewing but I have no idea what.

As a final thought, I think Demandred IS posing as a known character, someone who is relatively close to Rand. I say this because in Winter's Heart Aran'gar makes a comment on how it was Osan'gar's and Demandred's tasks to stay close to Rand and keep an eye on him (or something like that.....don't have the book with me right now). So who could it be? I say someone (not necessarily an Asha'man, because I'm sure he would disguise that he can channel) that has been around for a while and has not shown us any reason to suspect them. The only thing that keeps me away from saying Bashere is the whole part where Faile and her mother see him. Demandred couldn't pull that off. So I really don't know who he could be, just that when we find out it will be someone we already know and think is good (Dobraine maybe?).