DISCLAIMER: Your Steps and Tasks may be different
start is Lilerbad in Droighaid (lvl 35)
step #2 Wipe out the Fomorian settlement West of Droighaid (loc=29893, 45423). Just go down the road across the bridge, and go straight west when the road forks. I promise you can't miss it.
step #3 after killing them (yellow to 35), search the house. Basically, just wander all over the inside of the house until it says you find it. You need to have the bag that Lilerbad gave you for this to work. (Note: you cannot search for the tapestry until you kill the Fomorian Tremulare and Fomorian Bruid and your quest log tells you to. Search doesn't mean /search; you only have to run in the house until you get a message)
step #4 return the tapestry bag to Lilerbad, and he rewards you with a lvl 35 necklace.
If you think you've killed all the mobs in town and your quest doesn't
update, check the wall around the outside of the house. Sometimes a
Fomorian gets "stuck" in one - you can't target it. If you don't have a
ground target capability to hit it with an area effect spell, aggro one of
the other mobs to the area and use an area spell on it (as a bard, I used
an aoe mez).
lvl 33 received 39,963,964 exp, 6 gold and some copper
lvl34 received 50,351,451 exp 6 gold and some copper
lvl 39 received 76,098,242 exp 6 gold and some copper