After going around all night, I caught him coming out of the Blodfelag fortress at 8:27AM, he also dropped me a Bloddarlig Helm, in addition of the Living Warning quest's Flame Helm.
For the follow-up quest, Sugnhild's Revenge, going back to kill Konung Botolf Redhands, I found him again in the same house at the back of the fortress, at 6:05PM.
Edited, Dec 16th 2006 4:02pm by Goingbald