In short, yes.
Spoiler!
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He has a quest for you, after you approach him and accuse him of what's happening. He'll deny it, and ask you to do something for him. Do that, then return to him & he'll give you some other info that'll allow you to carry on with the game (essentially, going back to Kuldahar and telling whatshisname, "Nope, Kresselack wasn't behind the trouble").
[ 02-06-2002: Message edited by: Hayashi ]
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