Stumbled across another very complicated quest bug. Going to retrace the steps to the best of my ability:
If you do the (22)The Fellowship of Veruna quest book in the Arcane Council Path before starting the (22)Rebuilding Illanon Relations quest line, you can encounter a very frustrating quest bug.
This stems from Primorius Hyjon in Longshore. You are required to talk to him for (32)Ending Hostilities in the Veruna book, but while you are speaking to him you can also pick up (22)The Missing Scout from the Illanon book. If you pick up (22)The Missing Scout, it auto-starts the "Rebuilding Illanon Relations" quest line, but without actually starting the quest line from its proper point.
You can then complete the Illanon quest line all the way through the end of (32)A Call to Peace, but after completing that quest(which should be the end of the quest book), your quest line for (22)Rebuilding Illanon Relations does not advance like it should. It stays stuck at Stage 1 of 2.
Currently I have not found any workaround for this bug. If you could look into it, my unhappy quest book thanks you!
Edit: Corrected Primorious Hyjon's name.
Edited by huhbum, 09 January 2014 - 17:42.