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Background
When first you arrive in the Elven Woods, you will see the Elves frighten away Captain Hookensang and his men. This nets you 50AP. They still need your help getting rid of the pirates before they can help you with Ardo's healing. Three paths are offered: Forgrimm wishes to fight (#1), Jaakon/Fayris wishes to negotiate (#3) and Cano wishes to dupe them (#3).
Unlike some earlier quests, this one does not lock you onto a path once you've chosen. You can follow Fayris/Jaakon's method and Cano's method nearly to the end before deciding which one of the two you wish to complete or switching over to Forgrimm's method to maximize AP.
Regardless of your method, you can talk to Isaliel Wingstroke upon completion to bring Ardo under the Elven care and be pointed to the Bosparian Ruins, netting you 100AP.
1 - Pirate Camp (Forgrimm's Method)
Simply threaten Matt Bravethorn to enter the combat path. He will retreat, and you will first have to fight all pirates except Flea, Spinning Jenny and Captain Bravethorn. Getting past this group nets you 50AP.
Captain Hookensang runs away, leaving you to fight a wardog and five river pirates.
Chase Hookensang and right outside the camp a group of two wardogs and four river pirates will attack you.
Right before reaching Hookensang at #2, a final group of four pirates will attack you. Defeat them to net another 50AP for clearing the way.
2 - Captain Hookenang (Forgrimm's Method)
Reaching Hookensang nets you an additional 50AP. Here you must fight him, Flea, Spinning Jenny and two wardogs. None of them are much tougher than normal pirates, yet killing Hookensang nets you 70AP, Hookensang's Emblem, and unlocks the Hammerberg location. Defeating all three pirates nets you 150AP (100AP for resolving the quest, 50AP for discovering the location of Hammerberg) and closes the Pirates and Elves quest. Don't forget to loot Hookensang for an Officer's Sable and some 20D in gold.
Nearly completing Cano's method and Fayris/Jaakon's method and then switching to combat easily nets you the most loot and AP, but provides several drawbacks later on, including the fact that Hookensang won't be in Hammerberg to give you any quests or help there.
3 - Captain Hookensang (Fayris/Jaakon's Method)
When following either Fayris/Jaakon's method or Cano's method, Hookensang will talk to you when you enter the camp. Offer to act as a negotiator and head back to the elves.
4 - Isaliel Wingstroke (Fayris/Jaakon's Method)
Isaliel will tell you that you can not speak for the elves until you learn to understand their nature from Linwen Owlwing. This nets you 50AP.
5 - Linwen Owlwing (Fayris/Jaakon's Method)
Linwen tells you you must learn to recognize the soul creatures of Elbrenell Mistcaller, Calenleya Arrowsong and Lellindor Bougwalker, which opens the quest Dances with Elves.
- Elbrenell is close to Linwen. Talk to him and a human nature check will have you learn his soul creature is the magpie. This nets you 20AP.
- Calenya is on or near the path behind Linwen. A human nature check has you discover her soul animal is a bird of prey, then talk to Gwendala Sunbreeze for the hint that it is an eagle. Talk to Calenya again, ask if it is the eagle for 20AP.
- Lellindor is usually working at the workbench on the same level as Linwen. An animal lore check will reveal his soul creature is the squirrel. This nets you 20AP.
Return to Linwen for 40AP. He will also give you the Ama and the Zelja'ama for Fayris if she is in your party.
Talk to Isaliel Wingstroke again, she will send you back to the Captain for negotiations, netting you 50AP.
Captain Hookensang will reveal they are only looking for Elven Puff. Telling Isaliel this nets you 50AP, with an extra 50AP for picking up the puff (which you'll find next to the workbench). Returning the puff nets you 50AP and 100AP for closing the quest.
Once you return the puff this quest is closed, so if you wish to gain AP from Cano's method you'll have to do it beforehand. If you don't give the puff to Hookensang, you can sell it in Hammerberg.
6 - Pirate Camp (Cano's Method)
Talking to the various pirates unveils ways to sow discontent:
- Yaarruner: with enough Human Nature/Fast Talk, will tell you the crew is not happy about the way loot is divided, and that Black Alma is a thief.
- Spinning Jenny: will tell you Crow is a blabbermouth.
- Needlewhetter: Seduce (for females), Fast Talk or bribe for 2T to find out he has bets going on who slaps Boy first. Bet 5T on Grinning Hank.
- Boy: once you find out he is being mistreated, get him to mess with Crow's food (Fast Talk check) for 50AP.
- Black Alma: Seduce (for males) or Fast Talk to find out her secret (she's ill), though you can find out even if you fail the check. Tell Crow about it for 50AP.
- Shadow Fox: will tell you he thinks Black Alma steals. He also recently purchases a knife. Pick pocket it off him for 50AP, and then give it to Black Alma for another 50AP. If the pick pocket fails he'll put it in the locker chest, picklock it to get to it then.
- Grinning Hank: after talking to Needlewhetter, get him to slap Boy around for 50AP.
- Matt Bravethorn: Seduce (for females) and Fast Talk your way into convincing he should be Captain for 50AP.
After doing the above, talk to Matt Bravethorn again. He'll tell you to get the key to the supply chest from Spinning Jenny so the crew can get some drinks in them. You can pick pocket it off her or Seduce her (for males) or with sufficient Fast Talk convince her you can use it against the Elves. Getting the key nets you 50AP.
Bring the key to Bravethorn for 50AP and 100AP as the closes the Pirates and Elves chest. If you want to switch to Fayris/Jaakon's or Forgrimm's Path you'll have to do it before giving the key to Bravethorn.