Harmondale Quests
Clean the Castle
Quest Giver: Butler
When you click on the the door of your castle, the butler tells you about the goblins that took over your castle. Before entering the castle, I suggest touching the Stone Skin Pedestal in area 2 of the Harmondale Map. Once in the castle, try to fight the enemies a few at a time. There are a lot of enemies, so you don't want to have them surrounding you. If you have stone skin, you can safely search the garbage piles without getting sick. Some piles have some really good items. Also search the barrels, they will give you permament increases to your attributes. When you finish clearing out the castle, meet the bulter in the Tavern.
Fighting the Goblins
Quest Giver: No one
If you want to fight Grognard for his cutlass later on, you need to kill all the goblins outside of town. Saying that there are a lot of goblins is an understatement. (For any Heroes of Might and Magic fans, its more like: Zounds...Goblins!) It takes quite some time, but the cutlass is worth it.

These goblins are found just past the entrance to town. Draw the attention of a few of them, and kill them. If you are overwhelmed, run back to town. The goblins do not seem to able to enter the town so you're safe there. When you clear the area near the town's entrance, quickly run to the fort. Kill the goblins there, and press the switches to launch the weapons. When the goblins start to get too close, run back to town. Repeat this process until all the goblins are dead.
Grognard's Troops
Quest Giver: Goblin Spy
Near the entrance to town, there is a man standing by the Stone Skin Pedestal. If you found the letter in the treasure chest inside of Harmondale Castle, you will find out that this man is a goblin spy. Fight him, then light the signal fires anyway. Lighting the signal fires will call Grognard and his troops. The signal fire locations can be found on the Harmondale Map. Light all three signal fires, then go to area 6 on the Harmondale Map. Kill Grognard and his troops and the cutlass is yours.
The Missing AcroMage Player
Quest Giver: Darren Temper
Darren will tell you about his brother who went to the White Cliff Caves to practice AcroMage. Go to the White Cliff Caves (area 8, Harmondale Map). There are Troglodytes and Oozes here, but you can just run by them. They are slow, and will be busy fighting each other. Just run through and get everything in the area (see White Cliff Caves maps for locations).
Return the Signet Ring
Quest Giver: Davrik Peladium
Davrik Peladium will tell you that a group of bandits stole his ring from him. He asks you to get it back for him. The bandits are hiding out in a cave in Erathia. To get to this cave, first go to the Erathia region. Once there, follow the path. When the path branches, follow it towards the right (this is right before the bridge). Check the map in the upper-right side of your screen. You'll see a cave opening. Go off the path, sliding down the hill. Enter the cave and kill all the bad guys. The ring is inside one of the chests. You will need a fairly good Disarm Trap skill to open the chest without damage. Return the ring to its owner.
Find the Lantern of Light
Quest Giver: Tarin Withern, Welnin Cathedral
Go to Barrow Downs. Enter the Barrow IX, and make sure that the left lever is up and go to the left portal. You should be at Barrow V. Make sure that the left lever is up here as well, then enter the left portal and you should be at Barrow II. The Latern is here. Open the secret door that is right in front of you; it should be glowing red. Then walk into this narrow tunnel. Go right and all the way down the tunnel. Enter the last room here, and open the chests. The Lantern is in one of the chest.
Ask the Dwarves for Help
Quest Giver: Butler, Tavern
Your butler will tell you to ask the King of Stone City to help you remove the debris from your castle. Stone City is located in the middle of Barrow Downs. Follow the pathway towards to the South to get to Barrow Downs.
Find a New Arbiter
Quest Giver: Messenger, Harmondale
After about 2 months from the start of the Elves-Humans War, Judge Gray dies. It is your job to find a new Arbiter. This is how you choose between the Light and the Dark Path. Go to Castle Harmondale, and meet with the spokesmen from each side. They tell you that you have to pick up a judge at either the Bracada Tavern (Light Path) or the Deyja Tavern (Dark Path). Then you escort the judge to the Arbiter's House. Once in the Arbiter's House, the judges sends you to speak to the Leader of your side.
Payment to Mr. Malwick
Quest Giver: Messenger, Harmondale
Remember Mr. Malwick from Emerald Island? Well, he wants his favor now! The message says to go to the Mercenary Guild in Tatalia for details. Once at the Guild, you find that you are suppose to steal a tapestry from Castle Glooming (if you are in the Dark Path) or from Castle Lambent (if you are in the Light Path). If you don't steal the tapestry in the allotted time, Mercenary Guild members swarm Harmondale. I would choose to have the Guild members swarm Harmondale. They are easier to get rid off, but the town will close all its doors for a while.