Actually, on this quest, which I've done several times, the only problem that I see is that the quest giver does not have anything above his head to show he gives a quest. The quest goes as follows:
You must take out 4 of the Moraks around, then return to him.
You must scout the area for more Moraks, take out 4 and return to him.
You must then scout the Lost village and Moraks hill (something like that) then return to him.
He then gives you something to give to the Soothsayer in the Last Stand.
The soothsayer then asks you to great a number of the goblins around, then you have to great Grexx. Done.
I did find that not everytime I did the quest did the scout get chased up the tree by the Moraks.