The story is set in Japan.
A boy named Kotaro, accompanied by his dog (Tobimaru), is being chased and hunted down by the Chinese soldiers (The Mings) and along the way he meets a samurai named Nanashi (means nameless). Nanashi is a mysterious samurai that is constantly being haunted by dreams of the past which prevents him from drawing his sword. After a series of events, Nanashi ends up accompanying Kotaro on his journey.
Among the Mings is a westerner named Raou. Raou’s purpose for fighting is unlike the reasons behind the actions of the Chinese – his main purpose is to fight against the strong and he thrives on that fact.
He has been nicknamed a monster due to him being well known for his superior sword fighting skills.
Read more here
http://otakuness.wordpress.com/2008/04/18/stranger-mukoh-hadan-sword-of-the-stranger/