When you complete Quest 1(Thieves), Lydia tells you to see her father Gwendylon.
will help you locate Gwendylon.
He tells you about something magical in the Ruins, Which is South from the castle.
There should be alittle path that helps you find the ruins, You need to find 3 keys,
and a special Skull. The 3 keys will help you open a few locked doors to find the skull.
should help locate the keys and Skull.
Once you have the Skull you need to go back to Gwendylon. He will give you some cash and experience.
And send you on the 2nd part(3rd quest). Please refer to Skellie 2 for Instructions.