Okay, here is how it works AFAIK
1. Talk to the Lord, and decide not to attack
2. Find some skeletons in the southeast of the outside map. They are guarding a note and an amulet (mithril)
3. Get back to the Lord and talk the whole thing over.
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\"I am forever spellbound by the frailty of life\"<br /><br /> Faceman
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