Tarn Visilin ate my glamour stone
 

Ran around getting all these items for hours and he ate my stone

Gave him the correct amount of gold. Correct item ect.

Ate it.

Is the quest bugged?

3 things:

1. Check the bugs forum, this is mentioned there.
2. Don't ask for help with possibly bugged quests in the server chat area. You probably won't get help.
3. File a petition for reimbursement in the forums provided below. Otherwise, your items probably won't be returned.