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Quick Walkthrough

1. Wait until Hircine contacts you again to tell you about the Spirit Bear Ceremony.
2. Travel to the Eastern shore of Lake Fjalding and find the three Skaal campsites.
3. Keep killing the Skaal Trackers as they appear at the campsites.
4. When all the Trackers are dead, wait around for the Spirit Bear to appear SouthEast from the camp sites.
5. Kill the Spirit Bear.
6. Wait again for Hircine to contact you to receive your reward (a summon Bonewolf spell).

Detailed Walkthrough

The Dream

Wait a while, about a day or two from the last dream, until Hircine contacts you again. He will tell you about a Spirit Bear Ceremony being performed by the Skaal. You are you kill all the Skaal as they track this Spirit Bear and then kill the Bear yourself. The ceremony is being performed near the Western short of Lake Fjalding. Once the dream ends you'll find yourself in Werewolf form again.

Skaal Trackers

It might challenging at first to find the Skaal Trackers, but they are all along the Eastern coast of the Lake as Hircine mentioned. You should easily see three campsites in the area, all well lit (Site 1:-173300,191500; Site 2: -170900, 194100 ; Site 3: -174000, 195000; all just North of the Gronn cave). The Trackers will appear one by one at each of the sites. Continue to kill them all as they appear (about 10 total).

Note that one of your abilities as a Werewolf helps greatly here. If you look at your local map, you will notice that as a Werewolf you get the ability to see any creature/NPC on the map as a red dot. Great for hunting things which you can't immediately see.

Spirit Bear

Once you've killed all the Trackers and received the journal entry, you can wait around and hunt for the Spirit Bear. The Bear is a large white bear and cannot be easily mistaken for the common bears in the area. It appears just to the SouthEast (within sight) of the Southern most Tracker campsite shortly after the last Tracker is killed (-172000, 189000). You'll receive a journal entry when you kill it.

Reward Dream

Once the Spirit Bear is dead, wait around a bit until Hircine contacts you again. You'll receive his praise and a spell to summon a Bonewolf as your reward (not while you're a Werewolf anyways).