Talk to Apprentice Clerval in the Wizard Training Arena basement. He is fascinated by the Rune Guardians located around the Mage Training Arena and would like to make one. However, none of the wizards trust him with the information about how they resurected the older guardians. You'll need to speak to the three wizards who helped to resurect the guardians, Wizard Dougal, Wizard Edvin, and Wizard Shug, and find out what parts they played in the resurection.
Head to the room just east of the Apprentice, and speak to Wizard Dougal. He will tell you that he created 5 mind, 5 body, and 5 steam runes when he resurrected the guardian. He will give you some supplies: 10 noted pure essence, a water talisman, a fire talisman, and a binding necklace. He asks that you bring the runes you made to him; you can use pre-created runes.
Head to the final room in the basement, and talk to Wizard Edvin. He puts you in a maze of portals, as an attempt at creating a new challenge room for the Mage Training Arena.
The correct combination of portals from the start is to go through the west portal, the north portal, the north portal, then the north portal. He will reward you with the tool he created to shape guardian bodies.
Wizard shug is upstairs, in the library, on the top floor of the Mage Training arena. He won't tell you the secrets of the guardians without you first having at least 5 pizzaz points in any of the mage training areana rooms. He will then tell you that he created a method to enchant just emeralds, and that you need two enchanted emeralds to create a guardian.
Creating the Guardian
Head back downstairs with all the supplies. Use the workbench next to Apprentice Clerval to enchant the emeralds, and then hand all the supplies over to him. He will tell you that he was unable to fix the table, and ask that you fix the table. Use the following pattern of wires, and the table will work.
He'll then ask you to carve the body because he couldn't. Carve the body, give it back to him, and a cutscene will start showing the Rune Guardian coming to life. Quest complete!