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Background
You'll receive this quest from a frightened villager inside the Celestial Sapling inn in
Hearthsong, but only if you sided with Kolsc and killed Raedric during the quest
Lord of a Barren Land.
Walkthrough
The frightened villager will tell you that Raedric has come back from the dead, and that he wants to fight you in a duel. You'll find Raedric waiting for you on the roof of
Raedric's Hold (#2). If you don't want to walk all the way up there to meet with him, then you should agree to be escorted there by the fampyr at the drawbridge (#1).
Raedric will be a fampyr now, and he'll have a handful of fampyrs and fampyr guardians with him. If you have a priest (like Durance) with you, then this is a good place for a Prayer Against Treachery, to protect your party from being charmed by the fampyrs. Otherwise, you should just knock off the fampyrs one at a time, and then gang up on Raedric at the end.
When Raedric dies, he'll drop an
Exceptional Sword and the unique plate armor
He Carries Many Scars. You'll also earn an "extraordinary" amount of reputation with
Gilded Vale.
1 - Fampyr
2 - Raedric