Defender's Sash Quest - bug

[Birlic]

While doing the Defender's Sash Quest in Mistwoods, I turned in the piece of torn silk to Lieutenant Emorn but he despawned before I had a chance to type in the continuation of the dialogue (apparently he's a day spawn only). When he came back I did continue the dialogue and he replied as in this quest description but did not spawn any thugs on the riverbank.
Went back to Defender Llina but she won't give me another piece of silk when I show her the ring.

Character name is Adustus.

 

[Nihapleeze]

i had a similar issue tryign to do the quest, except my failure was due to killing the main bandit that spawns after doign hand in to Lt. Dan. i recieved "corpse is too far away" msg and was unable to loot the item to finish quest (robe i think). you CANNOT re-get the silk from the chick near hut, showing insignia does nothing, it seems to be a one time quest. i had this error happen on each of my characters and i finally gave up cause compared to othre attainable belts it wasnt worth stressing on. the first 2 rewards were nice, so just be prepared to do last part in 1 shot or you lose.

 

[Birlic]

Did this quest again, with another char, and this time I ran into the same problem that Nihapleeze has.
So far the quest got broken twice (out of two attempts) for me.