Head back to Miscellania and talk to Advisor Ghrim and ask if anything has been happening in the kingdom recently. He will tell you that your subjects are worried that they might have a war on their hands because King Vargas and Queen Sigrid have been quarrelling once more.
He suggests you speak to the Prince or Princess.
Talk to either Prince Brand or Princess Astrid in the rooms north and south of the Throne Room. The will be a cut scene in the throne room where the two of them explain the fight further, and Brand suggests that you persuade Vargas and Sigrid to marry each other.
Talk to King Vargas and he will skip talking about the war and instead tell you some of his people's items have gone missing and ask you to investigate the matter.
Leave the castle and talk to any of the people in Miscellania (it's suggested talking to Gardener Gunnhild as it is faster than talking to anyone else). They will tell you the Etceterian soldiers came and demanded a tithe, and that they refused and the day afterwards some of their belongings were gone.
Go back and talk to Vargas and report to him what you found out. Cross the bridge to Etceteria and to the second floor of the castle to talk to Queen Sigrid. She will tell you her side of the story and say that her people's items have also been stolen and that you should talk to them. Talk to anyone in Etceteria (Matilda is suggested to talk to as it's faster). They will have pretty much the same story with Miscellanians coming and demanding tribute. Return to Sigrid and tell her what you have learned. She thinks Vargas is up to no good and that she has no army.
Go back to Vargas and tell him what you learned. He's outraged and says that he also has no army and that you should talk to Ghrim. Say to Ghrim that King Vargas asked you to talk to him. He suggests you ask the Sailor if anyone suspicious has sailed over to Miscellania recently.
Talk to the Sailor at the docks and say that you're looking for sailor. He mentions five kids from Rellekka who came to visit relatives in the Miscellanian Dungeons. Talk to Vargas again and ask him how to get into the dungeons. He will give you a scroll and tell you to investigate the dungeons. Take the scroll and show it to the guard to enter the Dungeons.
Fixing a Lift
In the dungeons, head east to the bar and talk to a dwarf called Donal. He will tell you that work on the excavations has been postponed due to a "terrible monster". He will tell you about the tunnels and give you a mining prop, and that you should fix a lift to get to the monster.
Head north to the mines where Ferd and Thorodin are, and squeeze through the crevice at the northern tip of the dungeon (use the prop on the crevice so you can fit through). Now before you can fix the lift you'll need the items from the chamber you've entered: 3 Beams, 3 Pulley Beams, 2 Ropes, an Engine and the Instruction Manual. Mine 5 coal (if you haven't already got some in your inventory) and put them in the engine.
Now to start working on the lift itself. Use a pulley beam on the broken scaffold to start the repair. Use a pulley beam on two normal beams to get a longer pulley beam, and then add it to the scaffold. Use another pulley beam on the scaffold, and then add a rope to finish fixing up the scaffold.
Use a beam on the platform to repair it, and put the engine on the engine platform for the lift to be fully completed.
Go up the newly repaired lift and pick up the plank on the ground. Enter the cave to the east to return to the main tunnel system. Follow the tunnel east until you reach a lake blocking your path. Use a rope on the overhang to swing across.
Continue along the path until you reach a pile of fire remains. In the fire you will find a page from a burnt diary. Head around the bend to see another pool. Use the plank to walk across the four slippery rocks. As you continue on, pick up diary pages from fires until you reach a crevice.
You Meddling Kids!
Squeeze through the crevice at the end of the passage and you will see a cut scene with five Rellekkan's: Armod, Beigarth, Hild, Reinn and Signy. They needed to pass their trials to become Fremennik so they decided to create a war which they would stop so they would be seen as heroes and peacekeepers.
Your character will approach Armod as he unsuccessfully disguises himself as a rock. They will tell you about what they took from the tribes and a sea snake that has trapped them in the caves.
Why did it have to be Snakes!
Leave the Fremennik teenagers and pass through the next crevice. Pass by the masses of poisonous sea snake hatchlings and young (don't worry, they're non-aggressive!) and you will eventually reach a shaft of light shining down from the cave roof and yet another crevice in the north wall.
Pass through the crevice to enter a chamber filled with boxes and a large pool. Out from the pool will emerge a level 149 Giant Sea Snake you must kill. It will use ranged attacks to attack you unless you get up really close to it (not even if you use melee attacks!). If you are a high level you can get away on just a protect from missiles prayer and no food.
Once the snake is dead, it will drop some items, but the only one you have to worry about is a heavy box. Pick it up and go back through the crevice. A rope will now be dangling down from the ground into the cave. A guard will talk to you and you can then leave the cave by climbing up the rope.
You will now find yourself just outside of Etceteria. Go to Queen Sigrid and tell her about the teenagers and the snake. She will give you a letter which you must then deliver to King Vargas. Tell Vargas what happened and give him the letter which he will then read out. Apparently Brand's idea worked after all!