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The Elder Scrolls III: Morrowind Hints
The Haunting
1 of 10: This time, Kaye sends you to Caldera in the Ald'ruhn region to help out a guy named Nedhelas with his ghost problem.
2 of 10: Note that Kaye says he's giving you 200 gold to buy an enchanted weapon with, but he lies. No gold is added to your inventory.
3 of 10: Since ghosts are only vulnerable to magic spells, magic weapons, and silver weapons, make sure you have at least one of those before you set off to do the ghostbusting.
4 of 10: Travel to Caldera (via Mages Guild teleportation or whatever) and find Nedhelas, who's walking around outside.
5 of 10: Talk to him to get the key to his house and the trapdoor inside.
6 of 10: Go enter his house, which is in the SE corner of town.
7 of 10: Before going down the trapdoor, why not take a few moments to loot the joint? There are some gold coins and a Security skill book hiding near the head of the bed.
8 of 10: Go down the trap door and search the small Heleran tomb segment to find the ghost. (You may also run into a Skeleton or two.)
9 of 10: Once the ghost is "dead," you can go talk to Nedhelas and tell him the good news.
10 of 10: Then report to Kaye to get two magic scrolls that cast the Chameleon spell.