The Siege of the Skaal Village
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Location: Skaal Village, outside the Greathall, Korst Wind-Eye

1. Heart-Fang will thank you for what you've done, but will offer really nothing to help you nor any more quests. Exit conversation from him and begin to leave the Greathall, when suddenly you'll hear commotion outside.

2. Exit the building, and prepare to face a slew of werewolves. They'll attack both you and other village guards, so be careful not to hit them when you attack the wolves, else they'll be aggressive toward you.

3. When the wolves are defeated, your journal will update. Speak with a guard, who will tell you to go speak with Heart-Fang again.

4. When you enter the Greathall, you'll have to kill two more werewolves, but Heart-Fang will have gone missing without a trace. Exit the building again to find Korst outside waiting.

5. Speak with Korst, and he'll tell you that you've been infected with the werewolf disease. In three days, if you do not use a cure poison spell or potion, you'll turn into a werewolf. Korst will not speak to you again until such time as you're not infected.

6. If you decide to wait and turn into a werewolf:
a) you have no access to your inventory or magic menu.
b) you cannot cast spells.
c) you cannot pick up or use any items.
d) you can only attack with your claws, which will damage a target's health (unlike in hand-to-hand).
e) every night, you must feed on one NPC to satisy your thirst, or otherwise lose health every hour.
f) you must not change into or out of werewolf form in front of another person, or else everyone will know you're a werewolf and you'll be attacked on sight whether in human form or not.
g) if no one knows, you can do whatever you wish in the werewolf form, and come back as the human form without repercussion.
h) silver weapons do double damage to werewolves.
i) you cannot catch the werewolf disease later if you are immune to common disease, but can get it through the main quest here at this point... or much later in the quest with a special ring.
j) you will have huge bonuses to strength, agility and speed and a new ability, "Eye of the Wolf."

7. However, if you use a cure poison potion within the time limit (three days), you'll be cured and Korst will speak to you again. You should still have some if you kept them from after the first quest.

8. Speak with Korst after you cure yourself, and you'll be given honorary Skaal status, including a home there, (Halfhand's former home), so that you can rest or keep things in at your leisure.

9. Now talk to him about your next quest.