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At the ending scene, meeting up with Letho, he offered me vodka at the onset of conversation and when I declined, the cut scene showed Geraldt saying something "I only drink with friends." Then after talking with him and getting all that information, right before the decision to fight or let him go, the cut scene then showed Geraldt asking him for vodka and drank with him. So..does that mean, they're friends now and he changed his mind? Is that cut scene telling me something?

I did 2 play throughs - I let him go and killed him (for what Triss went through and to see if the fight is still as difficult at CH2 - hardly.). But for TW3, I'm going to import my save with him alive (if he's still there, which I think will be). Given what I learned in the past and seeing that nothing will be achieved in killing him; wheels were already set in motion regarding war; and, I may need more info/help later on from him, going after the hunt /or emperor. Heck if his motivation is all about creating a Witcher's school again I'll use my resources to help build one.

So yeah I'll drink that Vodka for ol' time's sake. (If there would have been loot after Letho's death, like his sword or armor, well, it would've been something to think about too... =)
probably the same thing as fighters touching gloves before a fight.
yes i did the same thing as you, but i drank with him and i let him go also, i felt the ending was a bit shallow and unsatisfying :(
I thought the ending was very good. Walking away from the fight seemed like the most Geralt-like thing to do. Geralt's not usually looking for a fight, and when Iorveth told me that Letho actually protected Triss from the soldiers, I thought that Geralt may look a little kindly at the rogue witcher... that, and Letho did spare Geralt in part 1...