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This quest will change a little bit depending on your gender and your choices at the beginning of the game. If you're male, you can initiate it by speaking to Laszlo; if you're female, by speaking to Linda, who will be located outside the Bowerstone Shelter, in Bowerstone Industrial. Note that this quest can only be completed before you become King or Queen.
Unfortunately, it seems the Bowerstone Shelter will be shutting down, as Laszlo/Linda's fiance has been kidnapped by a criminal called Nigel Ferret. Agree to help Laszlo/Linda, and you'll be led to a nearby house where the fiance is being held. Make your way down the trap door to The Cesspools.
Upon meeting Nigel, Laszlo/Linda will tell him that he/she doesn't have the money, and demands the fiance be returned. Nigel will send his goons after you, so deal with them. They're ordinary bandit-types, nothing too challenging. Once the fighting's done, don't forget to grab the
Rare Book "Dangerous Things: Gunpowder" from the table. Enter into Nigel's room and he'll surrender, telling you that the fiance has been left to languish in the sewers below. Time for some spelunking!
Dive down through the hole at the end of the room and you'll land in a delightfully filthy pond. It's at this point your choice at the beginning of the game manifests. If you saved Elisa or Elliot at the beginning, you'll find out the fiance is in fact your former lover. If Elliot/Elisa died, however, then the fiance will be replaced by a generic NPC called either Gerald or Geraldine.
Either way, the fiance will notice you and agree to follow. Grab his or her hand and then make your way out of the sewer. Inside the tunnel, on the left side you'll find a dig spot, and on the right path, smash down the wooden wall for a
Silver Key. Continue onward and you'll find yourself climbing down a hill, only to be attacked by bats. Dispense of them, then turn to your left at the foot of the hill and follow the path for a chest. Head forwards and enter the second tunnel, running straight towards the light for a dig spot and an
Evil Gnome. Turn back and head down the other corridor.
Outside of the tunnels, you'll finally find some action: Hobbes! There's two groups, though chances are the second one will come down the hill and join the fight before you've dealt with the first posse. Once they're all dead, loot the chest and the dig spot on the left side of the lower level, then head up the slope and into another cavern. There's a chest on the way containing some more valuables, and then you'll find yourself heading back into the city proper.
At this point, your companion will start having some second thoughts about his or her partner after seeing you perform in combat. Continue onward and you'll be given a choice: tell Gerlad/Geraldine or Elisa/Elliot that they should stick with Linda/Laszlo for good points, convince the fiance to dump Linda/Laszlo, or simply don't get involved for no change in alignment (in which case they'll stick with their current partner).
Upon returning, it seems that Nigel Ferret knocked out Laszlo/Linda, and managed to escape. It seems it may not be the end of Ferret's reign of terror after all. Enjoy the happy reunion or the breakup, and you'll be rewarded with 30 Guild Seals for your help.