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SPOILER---------------------------------------
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If you ask the trader at the table by the door of the Salty Dog about his magical-looking charm, and let him tell you about how to win it, you will recognize what Valin is referring to when he says "braegh".
IIRC, the way it used to be done is that you then go back to the Dog and tell the trader that you want to try to win the Wolf Charm, buy the first drink from him for five gold (so that he gives you his wineskin), then select "Wait, I've gotta go", skip off with the wineskin to heal Valin, then either go back and try to win the charm, or just go on with your life. However, this seems to have been a minor bug as I don't think it worked with the 2.01 patch. But that might have been because I was using the WeiDU Ease-Of-Use "Randomize Treasure" mod which turned the flask of breagh into a Yeti Fur Cap or something, and when I tried it again without the mod, I just picked his pocket.
He does sell the flask for like 187 gold, and since he'll buy the charm from you for 495, if you do win or steal it, you still make money if you don't want to keep the charm.
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