Sounds like you might be trying to do two different quests at once... Correct me if I am wrong. The drinking horn goes to the Undead Guy on the SAME screen as the wandering village, he is in the south end of it. The frozen grave in the next map over,the one with the women in the tent and such, is the grave of Kyosti. He was a member of the village who met with an "uncertain end" and requires closure. To help HIM you have to kill the will O wisps by te big tree in the center of the forest. But you cant do this until the drinking horn goes to the undead guy at the first map. The Fell Wood was designed BADLY and parts of it dont open up until some quests are done, such as the children and the drinking horn.
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\"You better move now little darlin\' or you\'ll be <br />trading fours with the Jack of Speed\" -Steely Dan
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