A Goblin Guerrilla (decent challenge to level 75) wanders very close to this area. Simply use Sneak and make sure he is facing away from you. You just need to activate the cutscene to be out of danger.
Return to Erlene for the final cutscene and your reward.
Magicians in the service of the Allied Forces have been disappearing with unsettling regularity. To solve the mystery of their whereabouts, first journey to San d'Oria to participate in the emergency council being held there.
SPOILER WARNING: Click here for additional details about this story line.