Everyone agrees, its a must read - Pain's Technique is revealed by the Rainfall
Pain: His technique revealed by the Rainfall.
Yahito "It always rains here and I hate it. Its like the whole country's a big crybaby. I'm gonna change it... and protect everyone." (Thinking to himself) If we're gonna understand each other, first we gotta make em suffer the same pain! That's why there'll always be wars... and protect everyone!
Yahiko uses water element.
Two guys (Both former Rain village ninjas) enter Jiraiya's frog tavern. "Isn't today Sunday? I heard that Pain sama has some stuff to do. These days he might have to go to other countries. But to have it rain off schedule... Its never happened before."
* If you connect the dots. Yahiko is Pain. Yahiko hated the rain, and wanted to make it NOT RAIN anymore. If Rain = Missery, then Sunny Skies = Happiness. HOWEVER, Notice that in the past, it was ALWAYS raining. What changed to make it not rain? I say NOTHING CHANGED.
Pain VS Jiraiya:
Two guys again "It must be quite a mission then. But if it goes on like this... Hey! Pain-Sama has done quite a lot for the people of these streets. Just bear with it for a bit."
Pain says that Jiraiya showed up IMMEDIATELY after Madara told him to get the 9-Tails.
I believe that Pain was preparing to send out his 6 Bodies to capture the 9-Tails, by charging their chakra.
Yahiko (who uses water techniques, and is 1 of the bodies) was creating the rain in order to sense any intruders, because during the time it takes to charge the bodies... Nagato, Pain's source, is vulnerable.
I think that Madara set Pain up, by arranging for Jiraiya to come, in order to get him killed. Madara uses Tobi as the tool to enact this. Remember that Pain doesn't know Madara and Tobi are the same person. Pain says Tobi is replaceable, in this link - http://www.narutocentral.com/manga-viewer/363/9/
NOTICE how the 2 guys captured by Jiraiya believed that it just started to rain off schedule? But it ALWAYS RAINS. Yahiko tapped into the natural falling rain, to use it as a sensor. He didn't create the rain. Just like Sasuke and his lighting technique.
Pain controls the thoughts off ALL THE NINJA in his village. Here is how....
Jiraiya captured 1 of the 2 guys by turning him into a frog. This capture person is the one who is now being interrogated in Konoha. Picture of the brain of the captured guy being interrogated. Isn't it odd that Pain set up barriers inside this ninja, to prevent interrogation? This ninja was not one of Pain's bodies!!!!
2. Jiraiya set up his bar, and put up a barrier around it to prevent the chakra from being sensed by Pain, and give away his location - reconissance. As soon as the 2 guys entered the perimeter, they realize that it is raining! But it was ALWAYS raining. They assume Pain is going on a mission, because... WHEN IT RAINS IN THEIR MIND, IT IS BECAUSE PAIN'S ENERGY IS BEING USED TO CHARGE HIS BODIES, NOT TO CONTROL THE THOUGHTS OF THE VILLAGERS.
3. A similar barrier was used by Jiraiya to capture one of Pain's bodies, the summoner. In Pain's attack on Konoha, a new body is used.
* The barriers prevent Pain from sending his chakra to the bodies, and thus cutting them off... once this happens, the body is immobile, however, if the barrier is released and the antennas are still intact, Pain can gain control again. If Pain chooses a new body, the previous statement doesn't matter.
I believe that Pain is part of EVERY villager, once Pain uses his technique to take over one of their bodies, that person becomes Part of Pain, along with their thoughts and memories. This is the "pain" that Pain is referring to. Once that body is disconnected to Pain, the memories remain part of him, but the body dies. This means that every ninja in their village has the potential to be Pain. See this page... http://www.narutocentral.com/manga-viewer/374/8/ - Pain saying that he grew up by understand other people's pain.