LOTS of spoilers
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1.) You have to guess his right name (or figure it out by the Tanner's letter)
He will ask you for another ingredient (Ctrl+A to be spoiled more)
the Blood of the Silver Dragon Adalon in the Underdark
and make you one of the best if not THE best leather armor in the game (evil chars only though)
2.)You'll have to do the Kangaxx quest. Meet Kangaxx in the lower levels of a house in the Docks district (Ctrl+A to be spoiled more)
He's a lich and asks you to collect his bones from other lichs in the Bridge district and the Unseeying Eye Dungeon
BTW he's a lot tougher to kill than Ctrl+Space (It's Ctrl+Y

)