Masashi Kishimoto owns Naruto, not me.

Chapter 2: Village Secrets

Last Time: Seven year old Naruto and Sasuke strike up a friendship right after the Uchiha massacre.

Konoha, 2 Years Later

All of Konoha was abuzz with talk about the upcoming Academy graduation exam. The news had spread quickly when it was realized that 9 year old Sasuke Uchiha was planning on taking the exam. This had some rather interesting effects. The first of these was that his entire fan club had decided to try to graduate as well. The other, perhaps more worrying issue, was that he Kyuubi brat was also taking the test. Since most people knew most of Naruto's instructor's purposely neglected him, they were upset at has gall to, as saw it, try to upstage the last Uchiha.

Mizuki was wondering what to do. Orochimaru had told him to wait until the demon boy had failed the graduation exam once or twice then trick him with offers of help. Now, however, something felt off. Mizuki decided to take matters unto himself and confront Naruto before he even took the test once.

Forest Near Konoha, The Next Day

Naruto was walking around the forest surrounding Konoha when Mizuki jumped in front of him. Naruto stepped back warily. Well most adults and instructor's either glared angrily or ignored him outright (except on that day) Mizuki seemed to revel in making him suffer.

"I've heard your planning on taking the exam tomorrow." Mizuki sneered. " You've got no chance."

"Don't be so sure." Naruto stated "You no nothing about me."

"Heh, I know more about you then you do boy." Mizuki replied.

"If your referring to the fact the you and most of the other instructors are setting me up to fail, I know that." Naruto explained. Some time after his talk with Sasuke the two had realized exactly how hard the adults were making it for him. They had started private training sessions immediately

"Heh, if you know that, then you must realize how little skill you have, why take the exam and embarrass your self?" Mizuki said.

"Cause I've been training extra after school" Naruto said "but purposely holding back in class, no reason to disappoint my teachers." Naruto added after seeing the confused look on Mizuki's face.

In truth Sasuke had pointed that if something really big was going on they were too young to get involved. So they agreed it was best to keep up appearances.

Mizuki was getting desperate. He had moved up his plans just to get here and was running out of options. 'Damn, Orochimaru you should have come somehow to see for yourself' he thought. He did not know why his master wanted the demon boy and did not dare ask. Orochimaru had assured him the boy would be lonely and desperate. When Mizuki realized this was not the case he tried to explain this to Orochimaru, but the Sannin had assured him he would just have to wait for the right time. Mizuki was beginning to realize that time may never come, he would have to break the boy himself.

"Did you ever wonder why every one hates you so much" Mizuki sneered.

"That's not true, Iruka, Sasuke and Hinata don't. And most importantly the Third doesn't" Naruto yelled. Sasuke had pointed out to him that Hinata seemed interested in him. She even started training extra along with them. Unlike them she was not taking the exam. Her father didn't think she was ready and despite the protests of the boys she didn't feel ready to stand up to him. They did agree to continue to spend time together even though they would obviously end up in different squads.

"Sasuke and Hinata don't know what the adults do. If they knew they'd hate you as well. The Third is simply repaying a debt to the Fourth and Iruka…" Mizuki stopped. Iruka came up from behind them.

"Naruto where have you been? Sasuke and Hinata were so worried when you didn't shop up training that they asked me told help look for you." Iruka noticed Mizuki was there and started to worry. The third never trusted that man for some reason.

"There you are dobe.'' Sasuke said. He and Hinata had caught up with Iruka.

"I'm glad you aren't injured" said Hinata.

"I'm fine Hinata, teem." Naruto stated.

Mizuki was pissed. The boy was friends with the heirs of two powerful clans. "You know what kid" he sneered "You cost us so much, now i'll cost you everything. You see the fourth didn't kill the Kyuubi, its right here." Mizuki points and Naruto and laughs maniacally.

Everyone gasps, except Iruka who launches at Mizuki.

"Why are you attacking me, he's the one who killed your parents." Mizuki called out.

"The Kyuubi killed them, not Naruto." Iruka shot back.

"Heh, didn't you hear what I said, and your old enough to remember anyway." Mizuki said.

"The Third was worried I would hurt the boy because of what happened to my parents. So he told me the truth." Iruka explained.

"Please, Iruka-sensei what is the truth." Naruto cried.

"You are not the Kyuubi." Everyone looked towards the new voice and saw that it was the Third. "Take him away." The Third ordered two Anbu he'd brought with him in regards to Mizuki.

"You monster!" yelled Mizuki as he was dragged away.

"We should all head to my office to talk further." said Sarutobi. "You too" he called towards some bushes which Sakura Haruno, leader of Sasuke's fan club popped out of. "He better be right, if you are that monster I'll make sure you never go near my Sasuke-kun again." Sakura stated.

Hokage Tower

Once every one had settled in the Hokage began to explain. "Naruto is not the Kyuubi, but the Fourth did not kill it either. He sealed it inside of Naruto."

"How is that different from what Mizuki-sensei said." scoffed Sakura

"Jinchuriki" Sasuke whispered "My mentioned it once. People with tailed beasts sealed inside them. If the seal is strong enough they can use the some of demon's power without being controlled by it. I also remember hearing that the Fourth's skill was seals was unmatched. Plus Naruto's will is too strong for the fox to control him." Sasuke grinned at Naruto at the end.

"But..all those pranks." Sakura accused.

"First, I haven't done anything too bad in years, and secondly I just wanted attention." Naruto turns to the Third before continuing. " Or even an explanation for why I was ignored."

"I..It was against the rules" explained the Third.

"Why!" Naruto demanded.

"The council made this decision against the wishes of the Fourth." The Third said, not really answering Naruto's actual question. Naruto caught this but decided not to pry. Instead he asked another question "What did the Fourth want?"

"For you to be seen as a hero who helped stop the Kyuubi" The Third told him.

"Hokage, even with the seal he can still unintentionally summon the beasts power, can't he?" Sasuke asked.

"Yes, and since know cared to teach him correctly.." the Third started.

"He ends up pumping more charka then he needs into his techniques." Sasuke finished. He was lucky to have realized that this was Naruto's main problem as earlier as he did. Otherwise would not have been able to accomplish anything.

"Impressive" All heads turn to a new voice.

"Kakashi, I'm glad you could make it" said the Third. "Now" he continued I want you three to the graduation exam right now!" All three students looked dumbfounded but shook there heads in agreement. "All right use henge, take what ever form you wish."

Sakura goes first, turning herself into a perfect copy of Sasuke, who bangs his head on the nearest hard surface. Sasuke turns into the Third who nods. Naruto uses his "sexy technique.

"You all pass" said the Third, his nose still bleeding. Sakura rolls her eyes and then groans after noticing Kakashi's nose is bleeding as well. At least she thinks it is, hard to tell with that mask.

"You three are now Team 7, and I am your captain." said Kakashi. "See you tomorrow."

"iruka…" Naruto looks over at the man who was once his only friend. Knowing now that the being that killed the man's parents was inside of him. It made him feel guilty.

"The way I see it, its a similarity. The Kyuubi cost both of us our families." With this statement Iruka hugs Naruto then leaves.

Sakura, feeling sorry for before ask Naruto "What did happen to your parents?"

Naruto looks towards the Third. The old man sighs "I owe you this much don't I. The Fourth, Minato Namikaze, was your father. Your mother, Kushina Uzumaki, was the previous jinchuriki of the Kyuubi. The seal, no matter how strong, weakens during childbirth. Someone took advantage of that and broke the seal, which unfortunately, in any situation, kills the jinchuriki and sets the beast loose. We don't know for sure but it may have been a man named Orochimaru. He was once my student, but was driven mad in pursuit of immortality. Mizuki was working for him. Also, Kakashi was a student of the Fourth's.

The newly formed team and Hinata walked out in stunned silence. So stunned that none of them noticed that the boys were holding hands.

Next Time: The dreaded bell test!

A/N 1: Thank's to belle-kurama-style-bankai for pointing out that it was clear what happened to to Hinata. She did follow them to the tower, she just never had any lines. She may have more experience but this is still Hinata were talking about. I added her to the last paragraph to show she was there.

A/N 2: I know I gave out a lot of info here. But, that's the point of this story. To show my idea of what would happen if things occurred earlier. Also I know I shoehorned Sakura in. The boys will have to deal with the consequences of this during the bell test. As to why the Third choose to involve her, that may time some more time to get around to.

Omake: "Why my original idea of of how this fic started was deemed entirely unfeasible. (See end of Chapter 1 for more explanation.)

Sasuke and Naruto ran at each other. Naruto tried to dodge but tripped. He fell towards Sasuke and their lips fell together. Sasuke kicked Naruto off him and the two boys looked at each other completely mortified. Naruto ran off… straight into a tree. This act promptly knocked him out. Iruka sighed, picked up Naruto, then sent everyone home early. He wondered how much therapy everyone would need after this, and how much more medical attention Naruto would need if Sasuke's fan girls ever got ahold of him.