This concerns Durlag's Pride - His Sword I believe.
You must find the room that his sword lies in (Lower left when viewed in map mode). Across the corridor from that is a room with four books in it. You must read each of the books in sequence from left to right. When you complete that you should be informed that you hear a noise coming fom across the corridor, go back to the room the sword is in. It will now have a pillar of light around it, it will thank you for reading of it's deeds in the four books. Go back to the dwarf and the quest will be completed.
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