I think the Shackle of Steel is bugged. Search the forums.
Something I found for you, via Google:
http://www.theclenchedfist.com/Conte...age/pid=2.html
"To free him you must obtain a coppernickel key by getting the copper key from a goblin interrogator, also in Droga, and the nickel key from a goblin penkeeper in
Dalnir and combining them in a large key base given to you by Master Rinmark. Give him the key and your shackles of Copper and Bronze and you recieve the Shackle of Steel and free Veltar, causing him to immediately despawn."