Kyuden Kyotei, Insight & Ring of Water

First the Card text -

Insight (Samurai Edition): Dark Virtue Battle: Target one of your Samurai: Look at the top 3 cards of any Fate deck. If any are Action cards or Rings, you may play one of them for an additional Battle action on it; if the action is on a Ring, you may pay the cost of discarding it from your hand by discarding it from the deck. You may rearrange the order of the remaining cards you looked at.

Kyuden Kyotei Your Market holdings in and out of play have the Legacy keyword. Political Reaction: Even if this Stronghold is bowed, if you control the Imperial Favor, before a Fate card out of play turns face-up from an action, trait, duel, or from being discarded: Give the card +1 Focus Value when it turns face-up.

Ring of Water After you successfully resolve your fourth or later Battle action from cards with different titles in one battle: you may put this card into play from your hand. Battle: Bow this card or discard it from your hand: Move one of your target units home or to a battlefield with one or more enemy units. If the unit moved, straighten it.

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I have one province and a single bowed defending unit at that battlefield, and a copy of Doji Chitose at my home. My opponent has a samurai at the battlefield and a personality at his home.

He plays Insight, targetting his samurai at the battlefield. I cannot target Insight with my Kyuden Kyotei's reaction as it is a rulebook effect that turns it faceup. The card he elects to play after resolving Insight is Ring of Water and he discards it to pay its cost.

1). Am I able to use Kyuden Kyotei to increase its focus value (as per reworded stronghold text)?

2). If so and I then react with Doji Chitose (moving my sole defending unit home to Doji Chitose's location) is he then required to move his attacking unit home when he resolves Ring of Water's action as he cannot move another unit in due to the lack of any enemy units?

Am I able to use Kyuden Kyotei to increase [the discarded Ring's] focus value?

Starting from 1 October 2008: no, because the Ring is not "turned face-up" when it is discarded into your opponent's discard pile, because it is already face-up in his deck before he discards it (see below). You cannot use your Stronghold's Reaction when the Ring is turned face-up in his deck, because the turning face-up is from the rulebook, not any action.

The Fate and Dynasty decks (out of play): "If text allows an ability on a non-Action card in a deck to be used, follow the procedure for using an ability on a non-Action card in a hand."

Using abilities on non-Action cards from the hand: "Sometimes, through card text, an ability is able to be used from the hand even though the card it's on is not an Action card; for example, the "discard from hand" cost on a Ring's ability, or a Follower whose ability puts itself into play from the hand. When such an ability is used, the action must be legal to take in Good Faith (see Good Faith Rule). If it is, then the player turns the card face up in his or her hand, then announces and takes the action. If, when the action ends, the card is still in the hand, it turns face down again. "

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Before 1 October 2008: yes, you can use this Reaction immediately before the Ring is turned face-up in his deck. Note that you don't know which card your opponent chose when you take this Reaction, you only know that he is about to turn the chosen Fate card face-up and whether it is a Ring or an Action card, because your opponent must tell you if a resolution area is created.

If so and I then react with Doji Chitose (moving my sole defending unit home to Doji Chitose's location) is he then required to move his attacking unit home when he resolves Ring of Water's action as he cannot move another unit in due to the lack of any enemy units?

Before 1 October 2008, yes.