Can any one help? I have spoken to him at the king and queen pub in capital city but he just will not help. ANy suggestions please? It cost me Five grand.
I had this problem too and thought the quest was busted. You may have found a note in the Anvil house. It was next to the skeleton hand. It must be in your possession for him to acknowledge that he needs to help you. You will also need the skeleton hand to complete the quest.
I've also read somewhere (think it was here) that when you arrive in the Imperial City you need to talk to the bartender (or any other citizen in that district) before you talk to the former owner. So don't follow the compass arrow blindly, but talk to a citizen first.