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There are two parts to this quest: finding Princess Evangeline's caravan and then finding the
Vai'kesh Sanctuary. Both parts are located right on top of the game's main path, and so
completing the quest is straightforward.
You'll find the destroyed caravan and Caravan Driver Mylindril right next to the southern
teleporter in the
Southern Vai'lutra Forest (#1). Mylindril will tell you that the Vai'kesh attacked the caravan,
and that they took the
Aegis of Death to their sanctuary to the south.
The Vai'kesh Sanctuary can be found right at the start of the
Vai'kesh Forest (#2). However, when you go inside and talk to the Vai'kesh prophet, no matter
what you say, he'll flee with the Aegis, and all of the Vai'kesh in the sanctuary will turn against
you. Knowing this, you can taunt and attack the Vai'kesh before going inside, and have an easier
fight as a result since you won't start out surrounded. But if you talk to the prophet, he'll let
you know that the Vai'kesh didn't kidnap the princess, and that she must be somewhere else.
1 - Remains of the Royal Caravan
2 - Entrance to the Vai'kesh Sanctuary