Actually i believe that you have to talk to his Mage again. The mage will say something like "She's Beautiful issint she", then the screen will fade out and fade back with the machinery moving and working. THEN talk to Larrel. I dont know if this helps any but im the type of player that does everything (or tries anyway) possible to be done before continuing with the plot so i've never had any problems except with crashes and lockups, which were due to my own stupidity
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