[mmiles8]

The first time I attempted this quest was at a very low level and I did not have logs turned on at that time, so I can't provide dialogues for Larsk Juton. I finally caught Gnasher again however and was able to verify a bugged step in the quest. It functions, just not as intended.

Step 1: "Gnoll Head [Gnasher's Head]" and "A tattered note". You may turn both of these in to Larsk Juton in Surefall Glade. He accepts both and gives a dialogue for both. He grants a reward for the head, and returns the note, telling you that Captain Tillin would be interested in reading the note.
* He returns a different, but identical version of the note. This is supposed to happen.

Step 2: Hand note to Captain Tillin.
* Captain Tillin currently returns this version of the note and says nothing, as he would if you gave him a fishing grub or other unintended item.

Today I took the note directly to Captain Tillin without first getting it exchanged for the proper version in Surefall. Captain Tillin accepted it and the quest ran properly.

So the bug is that Captain Tillin is scripted to accept the wrong version of the note. He should accept the exchanged version from Surefall Glade.