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Background

You'll receive this quest in the back of the King's Tomb (#1) when you talk to the Watchers Myrthos and Moriendor.


Walkthrough

Myrthos and Moriendor will tell you that they're hunting for some red imps -- aka "savage renegades" -- who managed to escape from their demon masters. How you respond to them will allow you to become more Righteous (leadership +1) or Renegade (pickpocketing +1). Your response will also give you two ways to complete the quest:

• If you're truthful to the Watchers and tell them that the imps are at the Homestead, then they'll give you a Mystical Tome (+1 attribute), and they'll teleport to the Homestead. When you follow them there, you'll witness them confronting the imps. Then the imps and the Watchers will disappear, and you'll earn 10,200 xp.
  
  
• If you lie to the Watchers and tell them that the imps are on a beach in Cyseal South, then they'll teleport to that location. When you follow them there (you'll find them just past the bridge to the west of the waypoint portal), you'll witness them giving up on the search and deciding to look elsewhere. This will earn you 4535 xp. Then when you return to the Homestead, you'll need to look for the imp leader, who is named Dark Underlord. You'll find him in the southeastern part of the map. When you tell Dark Underlord that the imps are now safe, he'll reward you with a Mystical Tome (+1 attribute).

1 - King's Tomb