Not positive on the wasting disease bit - think Restore Health should do it, or a trip to the temple??
When you say you are in the "middle of Shurugeon" do you mean you ENTERED the castle, i.e. flipped a lever and had the "loading" screen come up?
To do the Ninja quest, you get into the outdoor castle grounds by going through the moat and entering via a broken bit of wall. From there you just run to the north section of the castle walls, find the tower to the right of the drawbridge, run up the stairs and flip the switch to lower the drawbridge, fini!
Wyv
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