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Location: Skaal Village, outside the Greathall, Korst Wind-Eye
1. Korst tells you to meet Rolf Long-Tooth after nightfall near the west shore of Lake Fjalding and help him with the hunt. It's a bit deceiving since he won't actually be on the shore. Again, I spent a half hour just looking for him and trying different times of the night. Fortunately I'll tell you exactly where he is.
2. After 9pm, preferably by 12 or 1am go to the west-northwest shore of the lake and then head west, up a small hill until you see a few people. The middle Skaal is Rolf. Speak with him.
3. He'll direct you to follow his orders, and follow his lead on the hunt for the Spirit Bear. You'll have until morning, so if you waited until 4am to find Rolf, you don't have much time to complete this quest. Best to do it before 12 or 1am just to be sure.
4. Follow him a few paces, and you'll hear a scream and he'll stop. Talk with him, and he'll order you to investigate the sound from the right. One of the other people have gone missing. Simply walk to the right and a little forward of the direction Rolf is looking, to a nearby tall rock. Go behind it and you'll see a body on the ground. Your journal will update. Report back to Rolf.
5. The hunt must go on. Continue to follow Rolf until another scream pierces the night air, and he'll stop. Talk to him, and he'll direct you to investigate the sound from the left. Again, fairly nearby off to the left behind a moderately-sized rock is another body, this time of his other helper. Get near it and report back to Rolf when your journal updates.
6. Now, it's just you and him. Follow him for another 10 or so seconds keeping a lookout for the Spirit Bear until you're attacked by a group of werewolves. Fend off the attack, making sure not to hit Rolf in the process, and then speak to him again. If you were looking ahead before the attack you may have seen a white bear in the distance. Now, continue in the direction you were going when you were attacked. The bear is nearby. It will attack you on sight, so kill it and retrieve its heart.
7. Speak with Rolf and then go back to the Skaal Village and report to Korst. Again, you'll learn more about the Bloodmoon prophecy and about the "ominous signs." You'll also receive another summon spell, "Summon Bear." It's on to the northwestern part of Solstheim next.