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There is a girl near the entrace to the Bowerstone Jail that will answer your question about what Lady Grey wants and will continue to give you answers/hints to things about Lady Grey.

Not that hard really. After i found two pieces of Nostro's Armor, i went to Nostro's grave to talk and creep me out. After he said to find his armor, i saw little dots of light hanging over certain spots of the graveyard. I dug around these spot and got all of the armor. Hope this helps some. Don't ...

You need to have physique, health, and toughness mastered in order to pull out the sword. In other words master everything in strength, which will take a little while.