He is indeed inside.  He is currently in the center of the barrier.  The barrier extends around him in all directions to encompass our characters, minus the Captain who is observing.  It's a decently sized barrier, but for five people and two puppets, the space may not quite as large as it seems.  To make things tough, no one but Ten can see where the barrier ends.  Only someone of high-level, the creator of the barrier, or someone who has one of the three Eye Bloodlines can see it.  Since Tsuneo doesn't have the Sharingan awakened, that would be a problem until they discover the limits the hard way.<br/><br/>Taijutsu or melee attacks hitting the barrier will seem to pause mid-strike and be launched backwards at about 30% of the speed and force they hit the barrier with in the first place.  Ranged attacks will be reflected back at the same angle the were fired in with about 30% more speed and power.