From your link:
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You receive A Tattered Cloth Note (identifies as "Csb I.O.U. Elf 1"), which reads:
Brother.. Nildar.. I live still.. I will be home soon
Merchant Nildar is located at 882, 202 in Kelethin. Give him the note.
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taking the note you receive to Nildar results in: a piece of random leather armor, it sounds like
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Merchant Nildar says 'My brother still lives? Thank you for this news. Please, take this with my deepest thanks.'
You gain experience!!
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from a response:
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I have done this quest 4 times now 4 earrings to 4 wood elf slaves and 4 tattered notes to nildar i've gotten some pieces of armor leather or tattered leather and very very little experience
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Quest currently works.