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Background
You'll receive this quest from Declan Leuvaarden at the country inn (#1). You'll only
find Leuvaarden at the inn during the daytime.
Walkthrough
Leuvaarden will tell you that his friend attempted to enter Vizima through a cave next to its walls (#2), and he'll offer you 200 orens to find out what happened to him.
Inside the cave you'll encounter a handful of echinopsae, including a sated echinops. Echinopsae can be tough to kill if they gang up on you, so it's a good idea to quaff a
Swallow potion and to bump up your poison resistance before visiting them. Also, if you're not playing the Enhanced Edition (version 1.4), then you might need to manually move Geralt next to the echinopsae to attack them. If you just click on them, then Geralt might just stand there and do nothing.
When you kill the sated echinops, you'll find
Human Remains on its corpse. That's all you'll discover of Leuvaarden's friend. When you bring the sad tidings to Leuvaarden, he'll demand that you bury his friend in the basement of the Reverend's chapel (#3). You'll have to ask permission from the Reverend for this (otherwise the door to the chapel will remain locked), but he'll give it, provided that you've completed the Eternal Fire Shrine portion of the quest
Of Monsters and Men.
Inside the chapel basement you'll find a sarcophagus. Clicking on the sarcophagus will allow you to inter the remains inside, but when you do the King of the Wild Hunt (who is basically Death in the world of The Witcher) will appear and talk to you. If you respond "There is no destiny," "No," and then repeat the phrase given to you, the King will leave peaceably. Otherwise you'll have to battle the specter of Leo. Leo isn't all that tough, you'll get around 100 experience points for killing him,
and he'll drop a
Red Meteorite when he dies, so it's best to let him appear.
When you return to Leuvaarden, he'll reward you with 200 orens. If Leuvaarden is no longer at the inn, then you'll have to wait until Chapter II to collect the reward.
1 - Country Inn / Leuvaarden
2 - Cave
3 - Chapel / Reverend