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Quick Walkthrough

1. Speak to Tharsten in Skaal's Greathall who will ask you to investigate a theft of furs supposedly taken by Engar Ice-Mane.
2. Find and speak to the accuser, Rigmor Halfhand in his house.
3. Similarily speak to Engar outside and Risi Ice-Mane inside their house.
4. Find a note from Rigmor to Risi under a pillow in the Ice-Mane's house.
5. Confront both Risi and Rigmor about the note.
6. Tell Tharsten about the matter and choose to exile or sacrifice Tharsten.

Detailed Walkthrough

Tharsten Heart-Fang

After completing the lengthy Ritual of the Gifts for the Skaal, Tharsten Heart-Fang in the Greathall still wants you to prove you loyalty to the Skaal. He asks you to investigate a crime involving the Skaal Engar Ice-Mane, who is accused of theft, and Rigmor Halfhand. Tharsten explains that Rigmor claims to have had some furs stolen by Engar which were found in his home. If guilty, it is most likely that Engar will be sacrificed to the wolves. You are to investigate the matter and see who is telling the truth.

The Investigation

Both of the homes are close to the Greathall in the small town, so visit both of them to get their stories of the events. Rigmor has nothing much to add, other than he does not know why Ice-Mane stole anything from him. You'll get the same idea from talking to people around town who seem adamant that Ice-Mane is innocent of the crime. Engar is not home, but his wife, Risi, is so talk to her about the crime. Risi further states that Engar is innocent and suggests that someone, possibly Rigmor, may have framed him to disgrace him. Engar can be found outside wandering just East of his house. He doesn't have much else to add to the information you've already uncovered.

The Affair

By this time you might have noticed the subtle hints from people that might indicate that Risi Ice-Mane and Rigmor Halfhand had a little intimate relationship, although no one will say that right out. If this were true, it may provide a motice for Rigmor to falsely accuse Engar of theft. Take a closer look around the Ice-Mane's house and under the pillow of one of the beds you'll find a telling letter from Rigmor to Risi.

Confront Risi about the note (ask her about Rigmor Halfhand) and she will confirm that they had a short affair. Go and confront Rigmor about the affair who will confirm the entire thing.

Return to Tharsten

Return to Tharsten in the Greathall about the news you've learned and he'll tell you the fate of Rigmor up to you, either exile or the Wolves. Choose Exile to receive the Helm of the Wolf's Heart (constant effect agility/sneak +5) as your reward. You receive the same reward no matter which punishment you choose. If you choose sacrifice Tharsten will congratulate you on showing Halfhand mercy by letting him die with honor. You are asked to lead the accused to the wolf pen. You'll find Halfhand outside where you'll follow him to the wolf pen where he'll be attacked (the wolves disappear once he dies).

Note that since Rigmor's hut is now empty you'd think it would make a great place to rest and store loot. Resting is fine but at after some point, you are rewarded with his house, only they change the name and thus the interior cell, meaning that anything you had stored there will 'disappear'. If it is already to late, open the command console and type in:

player->coc "Skaal Village, Rigmor's Hut"

and press enter. It will warp you to the inside of the house, where you can pick up your equipment. When you have everything, just walk out the door and it will go back to being the Bloodskal's house when you walk back in.