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Convince Caulder to let you lend him a hammer to fix the broken catapult. Use the warhammer that you have been saving.
2 - Weapons Instructor
Give some basic instruction in spearwork to the Targos recruits, break the barrel.
3 - Niles
A mercenary, Niles, is skulking behind the bunkhouse. He asks for a bottle of alcohol. You may either give him the bottle of wine or chastise him into returning to his post. You will receive more experience if you get him to return to his post.
4 - Shield Rack
A soldier is standing in front of a shield rack. He will tell you that he is guarding it, you can use Bluff to fool him into leaving and retrieve the shield.
5 - Mercenaries
A group of mercenaries will tell you about playing fetch for Shawford Crale. They talk about using Swift Thomas as a runner.
6 - Soldiers
A couple of soldiers are betting who can shoot the barrel off the wall. You can place a bet and shoot the barrel to gain a longbow.
7 - Shawford Crale
Inside you will find Shawford Crale who tells you to find Olap Tamewater and assist him with the construction of the Palisade. A healer is also inside that will heal for free.
8 - Olap Tamewater
Olap says that he is in need of lumber. Tell him that the crane is broken and needs repaired. He will tell you to find his father, Jorun Tamewater, at the docks about fixing the crane. Talk to Swift Thomas (8A) and ask him to take you to the docks. Find Jorun and tell him the problem with the crane. He will give you a spare crane wheel. Using Swift (he will stay where you entered), go to the town, talk to Lumbar and snap the wheel into place. Have Swift return you to the Palisade. Tell Olap the crane is fixed. Tell Shawford Crale the Palisade has been repaired. He will send you to Isherwood about some arrows.
9 - Swift Thomas
Swift Thomas will lend you his aid in repairing the crane for Olap (8).
10 - Isherwood
Isherwood is in need of three hundred arrows. He says to go to the Gallaway Trade Depot and have them delivered. Use Swift to take you to the town. Asking Diedre for the arrows proves to be a problem. You can intimidate her to deliver the arrows or purchase them yourself for 50 gold. Return to Isherwood and he will give you some Flaming Oils.
Return to Shawford Crale for your next mission. He sends you to talk to Koluhm Bonecutter in town to find out what he has gleaned from the goblin's dead body. Have Swift take you to town and talk to Koluhm. He can't give an translation of what the dead goblin said, ask him to write it down and send to Shawford Crale. Return to Shawford Crale.
Your next mission will be to convince the Iron Collar Mercenaries to take up their posts. He gives you license to take whatever means necessary. Go to the Salty Dog Tavern in Targos Docks. You can threaten to link them with Phaen's treachery, have their contracts revoked or kill them. The experience gain is the same whatever you decide. While you are there sell any loot and purchase supplies.
Save your game before returning to Crale and informing him about the mercenaries. While talking with Crale you will hear an explosion from outside. The Palisade is under attack!
11 - First Attack Wave
The first attack wave is right outside Crale's building. There are several goblins, along with some hounds, and a Worg Rider, named Vghotan. Use your archers to take out goblin archers and sleep or entangle spells. You will receive a Worg Collar upon Vghotan's death. After they are dead you will be shown of another wave attacking. Heal any members and loot the bodies.
12 - Second Attack Wave
Caballus will fireball the northeast wall and another wave of goblins will appear, lead by Ghotrag. As before focus on Ghotrag and the goblin archers first, then the others. Ghotrag drops a crossbow and a potion of Mirror Image. Again heal any members and loot the dead bodies.
13 - Final Attack Wave
The last attack wave is lead by Caballus. He will use spell attacks and defenses, some of his spells will take out the goblins. The goblins will surround him, so getting to him will be difficult. There are also goblin archers behind. Choose your targets carefully or you will not survive. Caballus will drop a Filthy Goblin Staff.
Travel through the Palisade making sure to collect all loot. Return to Crale for your payment. Go to Lord Ulbrec and he will reward you with experience. He will give you a mission to retake Shaengarne Bridge from the goblinoids. Stock yourself well for this journey. The exit is through the northeast gate by Caballus' attack site.