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Quick Walkthrough

1. Return to Skaal and speak with Tharsten in the Greathall. Before you exit the building you will be informed that Werewolves have attacked the town.
2. Exit the Greathall and help the villagers kill the seven Werewolves that attacked.
3. Reenter the Greathall and kill the two Werewolves inside. Note that Tharsten is now missing.
4. Speak to the Shaman Korst who is now outside.

Detailed Walkthrough

Return to Skaal Village

After dealing with the Draugr Lord, Korst Wind-Eye on the Northern shore of Lake Fjalding tells you to meet up with him again the Village after a time. You can head up right away and enter into the Greathall to speak with Tharsten. Before you leave the hall, you should be told that the town is under attack by Werewolves. Exit the Greathall and help out the villagers to kill the seven attacking Werewolves (the guards do a pretty good job by themselves). After the seven are dead you will be told that some Werewolves got into the Greathall. Enter and take care of the two in there to find that the Honor Guard is dead and Tharsten is missing (much like the Captain of the Fort strangely enough).

Korst Wind-Eye

Exit the Greathall and you'll find the Shaman has returned just outside. Korst thanks you for helping to protect the town, but informs you that you've contracted the terrible disease yourself. In three days you will turn into a werewolf yourself, though a simple Cure Disease can be used during the three days to cure yourself. Until you are cured, you are banned from the Village in order to prevent others from being cured. Assuming that you wish to continue this side of the quest, you must find a Cure Disease potion or spell. I believe this is your only opportunity to become a Werewolf so don't lose it if you want to be one. If you do want to continue as a Werewolf, continue on with the Werewolf Quest.

Become a Skaal

Once cured, return and speak to Korst who names you a true Skaal, giving you the name BloodSkal. He even gives you Rigmor Halfhand's former residence (which you've probably already claimed).

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