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Visit Jinnerth the Tailor at #10 on the map, and he'll mention he wants to join the local militia. The problem is he's not exactly cut out for the job, height-wise, according to Renton, the captain. You can then agree to talk to Renton about the matter for Jinnerth.

During the evening (or night), head over to Renton's place at #17 and have a chat. There are a few ways to complete the quest. Using Diplomacy (always click on your character with the skills you want to use and then click on the NPC to talk) you can persuade Renton to allow Jinnerth to enter the militia if the tailor crafts their uniforms. Alternatively, by using another character with Bluff, and with a cleric in your party, you might have the option to tell Renton that your god is displeased, causing him to accept Jinnerth. Either way, head back to the tailor's shop and tell him the good news. Yet another option is if you have Elmo in your party. You can use the logic that since you've hired Elmo, Renton should recruit Jinnerth.

If you've chosen the diplomacy method (which most parties will) you can offer to reimburse Jinnerth for the uniform costs of 20gp, if it makes you feel better.