Awesome.
Sadly, I'm at a complete loss for password, theme, or #1. I feel like 'pilgrim' is likely to be a specific person, rather than a synonym; the obvious synonyms for pilgrim are too long to be removed from anything. There's nothing indicating an anagram, but none of the words I can come up with for 'scent' spring out as a Middle-earth name with another word spliced in the middle.
Ulmo and Osse together immediately points at the ocean, but what are we to make of dais? Obviously the answer is less direct. (The obvious third is Uinen, but she's female!)
And the password? If it's from the first letter, I can't conjure up a single word that describes a theme or is a Middle-earth word. Ludo? But we're not in
Labyrinth, and Tolkien was silent on the board games of the gods. Judo? I'm sure Ulmo would love to throw Osse across the dais a few times, but...
With three four-letter words, the password could actually spring from any of the letters... _LAS, _MIS, _OSE. Any of those could make a word - 'Alas!' 'Nose!' - but no obvious connections to the answers are jumping out.
So that's where I am. Maybe someone else will read this and the answer will come to them!
hS