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Deru's Treasure Hunt - part 1


I know this is totally stupid, but I need help with the first part of the hunt. Didn't finish on merc level, but would like to now. I initiated the quest and have found part 2 (according to posts here). Where did I miss the first part?

Thanks, but I lost a displacer

Actually, I was lost after completing the quest in Illicor. Anyway, I have now lost the displacer in the Lair of the Cicatrix. Any clues?

Went through Illicor, did the quest, picked up the mage, and got lost. Where in the world did the path go? I've stumbled almost everywhere, and run into walls. Can someone please help?