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The Elder Scrolls III: Bloodmoon Hints
The Castle Karstaag
1 of 11: Talk to Wind-Eye about "ominous signs" to learn that lots of Horkers have been mysteriously slaughtered near Castle Karstaag.
2 of 11: He wants you to investigate and see if the castle's owner had anything to do with this, so head over there.
3 of 11: The big front door to the castle is closed and sealed, so you'll have to find an alternate entrance.
4 of 11: Find the underwater entrance to the Caverns of Karstaag a short distance north of the castle (location 60 on the Solstheim Map) and go in there.
5 of 11: After a short swim, you'll come to a talkative little Riekling named Krish.
6 of 11: Talk to him about the local situation, then head on down the passage with him in tow.
7 of 11: The exit to the castle's Banquet Hall is at the far east end of the caverns, but Krish won't let you go there until you've killed all eight Grahl in the caverns area.
8 of 11: Once you've gotten them all, enter the Banquet Hall and kill the hostile Rieklings in there (being careful not to accidentally kill Krish).
9 of 11: Then it's on to the Throne Room, where Dulk is sulking around. Talk to him to learn that Karstaag has been taken by the werewolves, and that neither he nor his Riekling minions had anything to do with the Horker massacre.
10 of 11: You can then loot the Throne Room and Karstaag's Chambers before leaving.
11 of 11: Report back to Wind-Eye to finish the quest and get the Stalhrim Longsword of Flame.