Traveler's Way -- Stones of Power (version 2)
DISCLAIMER: Your Steps and Tasks may be different
As of patch 1.79 this quest is no longer being given out, only those with this quest in their journals prior to the 1.79 patch can complete this quest. This quest has been replaced with a new Epic quest (#1).
You are told to speak to a merchant in Humberton village, not the keep. He tells you to go kill a weakened demon behind the demon's tower in Camelot Hills. To get there, go to the bridge that connects Camelot Hills to Salisbury Plains. (The bridge is SE of Prydwen Keep, also SE of Camelot) Follow the bridge east, and away from the shore a tad to avoid aggressive mobs, and you should stumble upon the tower in a few seconds time. Encircle it, remembering to avoid the guards at the door, and you will find the weakend demon between the standing tower and the broken tower. Kill the demon and you will get the Demon Soul Gem (hidden eye), return to the merchant in Humberton, turn in the Demon Soul Gem.
This quest is a prerequisite for the level 11 Quest.