It might be worth checking Gamebanshees, site for info on this, but sice i am in a typing mood then here goes:
The inspector tells you of a homeless beggar who might have seen something find him pump him for information pay him the 100 for a animal hide, and you should have all the info you need, there is more to this so i won't ruin the suprise
http://www.gamebanshee.com/ubb/smile.gif