quest name: Book I, Chapter 4: Dark Designs
optimal level: 12
From a dying brigand at Skunkwood's old hideout, you learned that the strange Pale Dwarf was trying to bully the Blackwolds into continuing their alliance with the Witch-realm of Angmar.
Objective: Talk to Strider.
Strider is in his room at The Prancing Pony Inn in Bree, which is found by taking a left down the hall out of the common room until you can only bear right. The room is at the end of the hall to the right of the stairs.
You should return to Strider and tell him what you learned about the Blackwolds and the Pale Dwarf.