Wavecrest Inn Basement
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If you have prepared for this room by completing all of the training missions in Smuggler's Rest, gathered all the loot from the boxes and casks, and gotten your new weapon before you take the boat to Stormreach you should be ok. You will gain many useful items from the casks and chests during the training missions etc.
A few hints I found useful as an elf ranger when completing this quest.
The quest is in two parts.
Speak to the bartender to get part one. Enter the basement and left click the cask by the wall. This will reveal a secret door. Go through the door and use the lever to activate another secret door. Use your sneak skill and your bow to kill this first kobold. The first can be taken while it is still asleep by the fire using your bow. Slowly approach the fire while sneaking and use your cursor to locate him. He is asleep by the fire and when you pass the cursor over him it will turn red. Shoot him with your bow. He usually dies with the first shot. Loot the two chests beside his body. One contains loot, the other an omninous object.
Return to the bartender. He will tell you to speak to the priest. The priest will then ask for your assistance. Return to the basement for part two.
Upon returning to the dungeon you will be faced with 10 kobolds that you must kill in order to get to the named mob. They are spread out for the most part and not difficult. Use your bow when possible then switch to melee for close in combat and you should be able to survive and kill all ten. After killing the last of them, get Aidia's necklace from the chest that is on ledge over the hole in the cavern floor. There is a ladder leading up to the ledge. Then use the shrine to regenerate before you proceed.
Climb down the ladder through the hole in the floor and approach the altar. Left click the altar and then quickly head back up the ladder and towards the exit. Pause just before the round door. Make sure you are ready to battle the named mob. You will not have time to use your bow so have your melee weapon equipped and ready. Have your healing potions on your quickkeys also, just in case. You should have plenty of them from breaking open all the boxes and completing the training missions.
The named mob is not difficult to kill using melee attacks. You must remember to block his attacks if you wish to survive. If you find yourself low on health drink a potion. Using this attack, block, heal sequence you should be able to complete this mission with few problems.
Don't forget to loot his chest after you dispatch him to his ancestors.
Return to the tavern, speak with the bartender, the priest, and then head to the back of the bar where you will find Aidia. Give her the necklace and she will reward you with some gold.
That's all there is to it. Congratulations on completing your first real adventure.
Order of the Wolf