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Background
During the liberation of Dandelion and Zoltan (quest:
By the Gods - Stringing Up Sods), you'll meet the head of Flotsam, corrupted officer Loredo (
#1). He saw a potential business partner in you and offered you to meet him in his residence in the evening hours.
Walkthrough
Once you think you're ready to continue this automatically-received quest, move to Loredo's gate over at
#2 after 21:00. When talking to the guard, you'll also have to leave your weapons in the chest nearby. Just as you're about the enter though, Roche will turn up and state that he also has business with the commander. After the guard mumbles something, Roche will exhibit his short temper once again and then accompany you inside.
As you make a few steps inside, Roche will notice a ballista (
#3), which enables Loredo to control the ships that come and leave Flotsam docks. He'll ask you to disable it before venturing further, and then come back and speak to him. You'll listen to Roche this time and find a way to disable that ballista. Further details on that are covered during the quest
The Ballista on its own page. Once that's done, head over to Roche (
#4), who'll devise another plan.
Talking to the guard right outside the door won't yield much good. He'll just say that Loredo's busy talking with Sile and that you should come back later. Get downstairs and talk to Roche. He'll then tell you his plan and distract the first guard. Afterwards you're on your own, trying to see and overhear what's going on.
If you get caught during this stealth mission, the guard who caught you will just say that he doesn't like thieves around and will send you to Loredo where the quest will continue as normal. Sneaking around though is a much better choice to gather some lore tidbits and overhear Sile and Loredo.
Slowly start sneaking, while making sure that you're out of soldiers' sight and out of direct lighting sources. You can of course knock the soldiers down from behind and put out any fires if necessary. The first three windows (
#5) will reveal what's Loredo's mother doing. She's some sort of an insane witch. Carefully proceed further as there's a guard right behind the corner.
After dispatching that guard, you can climb up at the designated spot (
#6) and continue on your way. Upon taking a few steps, you'll notice Sile on the window, and that's the window (
#7) where you'll need to eavesdrop.
Dispatch all the guards and then freely take a look around. There are a lot of stuff to be looted, one of the chests has
Astrogarus' Armor, and if you're still on the quest
The Kayran, the iron frame needed for kayran traps is located at
#8. Once you're done with looting, go to
#7 using the ladders and overhear what is being talked about. After eavesdropping a fierce argument, head back to Roche at
#4. Report to Roche what you've overheard and you'll also get 150 experience points.
Now you're going into Loredo's home. Roche isn't invited though, so he'll have to pass up this opportunity. Anyway, on your way to his office you'll meet Sile, who seems pretty upset, but won't tell much more other than that the commander is in a bad mood. Right before you go to Loredo, you'll notice a postbox nearby. If you took the key from Louis Merse during the quest Mystic River, you'll also be able to open this postbox to read Loredo's private letter. You'll learn that Loredo collaborates with certain Dethmold. Dethmold is King Henselt's royal advisor sorcerer. Henselt is the king of Kaedwen. That way you'll learn that Loredo isn't really concerned with Foltest's death.
The talk with Loredo is a pretty lengthy conversation, where most of the dialog choices won't really matter much except for the role-play value. In the end he'll offer you a deal to scout for him on the Scoia'tael using Zoltan as a bait because he's contacted Iorveth before. You'll also learn about the prison barge and its prisoners. Going to meet Iorveth with Zoltan won't be available though until you deal with the kayran, when they'll be considered free. In the end, you can either accept this deal or refuse it (he'll throw a few menacing words then). Either way, it's time to leave his estate (
#2). Loot your weapons from the chest nearby and you'll also get 300 experience points for your efforts.
Accepting or refusing his offer will only influence the main plot in a minor way, where instead of just being allowed pass at certain guard posts later on, you'll have to resort to persuasion, intimidation or Axii sign instead.
1 - Loredo (at the gallows)
2 - Gate to Loredo's residence
3 - Ballista
4 - Roche
5 - Windows
6 - Climbing spot
7 - Window to eavesdrop on
8 - Iron frame (for kayran trap)