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After completing the quest
, the next time you enter the
tavern (during the day or night), you'll witness Isabela having a disagreement with a mercenary named Lucky. Lucky won't fare very well during this encounter, and afterwards he'll slink off with his men. Then when you talk to Isabela, she'll give you this quest.
Isabela will tell you that she's scheduled a duel, but that she doesn't expect her opponent Hayder to play fair, and she'll ask you to watch her back. To help out with the duel, you'll need to travel to the main square in
at night. When you talk to Isabela there, she'll tell you that she hasn't seen Hayder anywhere, but then several raiders will jump out and ambush you. When you loot their corpses, you'll find a letter, and you'll learn that Hayder is hiding in the
On your way to the
, you'll have to dispose of another group of raiders, but then inside you'll finally meet Hayder and his men. Hayder will demand to know what happened to "the relic," and when Isabela isn't forthcoming, he'll attack. Hayder can be tough -- he hits pretty hard and has lots of health -- but Isabela can't be knocked unconscious, so if you have trouble, then just run around in circles for a while and let Isabela (and hopefully at least a couple party members) finish everything off.
After the battle, Isabela will reveal that she doesn't even know what the relic is, "except that it's ancient and worth my weight in gold." Then to reward you for your help, she'll volunteer to become a companion, and you'll also earn 400 xp plus find
The Bodice Ripper
on Hayder's corpse.