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The Castle Karstaag
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Location: Skaal Village, outside the Greathall, Korst Wind-Eye

1. Korst wants you to investigate the deaths of the horkers, and believes a good place to look for information is the ricklings near Castle Karstaag. However, since the front of the castle entrance is blocked at this time, you'll need to enter through an underwater one north of the castle.

2. The Castle's located in the northwestern center part of the island, very close to the north shore. Travel to the beach until you see the large ice Castle directly south of you. Prepare to go underwater again, and you'll find that just off shore, directly north of the castle, is an underwater cave entrance.

3. Take the entrance to the "Caverns of Karstaag" and you'll run into Krish the rickling. He'll ask you to defeat the grahl in the caverns and then escort him to the entrance of the castle, at which point he'll lead you to Dulk, another rickling with more knowledge than he.

4. Kill all the "Deadly Grahl" in the caverns and your journal will update. Then take the left at the first intersection from the entrance to the caverns and follow that to the "Castle Banquet Hall."

5. Inside you'll fight a half dozen or so more ricklings that aren't apparently as eager as Krish to make deals, and so die easy deaths. There's a pretty impressive dining table in here, for giants, which at the other end of, is the exit to the Throne Room.

6. Dulk's not far once you reach the Throne Room. Exhaust his conversation subjects, find out Karstaag was taken by werewolves, and then backtrack out the way you came, and report to Korst again in the Skaal Village. He'll give you a nice magic sword, tell you a little more of the Bloodmoon Prophecy and say that you all must wait. Sounds like a good time for a rest.