I am happy to say that the Campaign Rules of 2nd Edition indeed revisit the continent of Folenn. Credit is given to Shadow World and the works of Mr. Amthor that made it possible. The old box set included a terrain and a political map. These two were merged into a new combined map (that took more effort than expected) that allows players quick reference of where their scenarios actually take place.
Contrary to First Edition, the scenarios do not involve themselves with politics, but rather put the adventuring parties (who seek the fallen treasures of infamous Bladestorms) at odds with personalities at new and old locations (which previously appeared in the old Sourcebook).
Since Folenn is part of Kulthea, you will find some races familiar like Garks/Krals, Lugrok and Hirazi. However, the rules have been streamlined to integrate with any fantasy setting. The entire magic section was redone to stay true to Rolemaster spells and their effects. The introduction of Rolemaster professions makes it also easier to use the system for what it was initially intended for: Manage large scale rpg battles with scaled down skirmish rules.