I talked to the mage in the Governement District, in the Council of the Six building and he sent me on a quest to bring back the body of the dude in the slums (forget his name). Apparently this guy killed a couple of cowled wizards or something like that. Anyways I found his house in the slums but no one is there. I can't remember for the life of me if I killed him or not. I went upstairs and everything but not having much luck. Did I miss out on this quest?

Correction, I meant the dock district not the slums for that guy.

Look around that house in the docks, you should find a tax document for a another Corthala property in the Umar hills, that is where Valygar is holed up. For some reason, even tho the Umar Hills is highlighted on my world map, I couldn't travel there unless I went to a nearby area, such as the Windspear Hills or de'Arnise Hold. (bug)??