so my last/ current quest was to sneak into a party at the Thalmer Ebassy

but why a I doing this ? who is this person at the riverwood inn ? what does this have to do with fighting dragons o.0 ?

also on a side note did my inability to sneak get the contact killed or was that scripted event ? (I tried to sneak but the elven armour clad warrior goons saw me so I had to unleash my powers of destruction upon them... and I summoned a storm atronach that was bound to the mortal plain "permanently" for back up

did you try listen to conversations and not skip them?

Delphine suspects Thalmors are up to no good. Typical, since she's been hiding from them all this years to avoid her head flying high off her shoulders.

no just been about 40 levels since i last touched the main quest I forget who these people are and why the dark robed high elves are evil .-.

oh lol, ok

Delphine believed that the Thalmor might have something to do with the return of the dragons, that's why you're sent in there.
That the wood elf contact guy gets captured at some point of the mission is scripted, but there it's possible to save him and escaping with him.

If you manage to save him, he'll be at Windhelm at the Gray Quarters, providing another quest for you.

what happens to him for me ? He's dead not sure when he died probably some time between the point of when people knew that a spy run running about and my blasting everything with ice wall and thunder bolt tho I know wasn't me that killed him because his body was at the top of the stairs not in the room with the prisoner where the slaughter took place

is the guy in the cage important ? I freed him and my last save was above a ledge where some beast is growling below I haven't heard the roar of a dragon in a while and I'm hoping thats not what is below me ...

The man in the cage will go to the Ragged Flagon if you free him, but there's nothing more to it.