Exit out to the world map to spot the Silverstep Grove area, provided you unlocked it by following the tracks in the Lake Silverstep Village area. From this aforementioned area, you need only head east, then north to reach Silverstep Grove.
Wolf and Worg Welcome
You'll arrive at the southern end of this relatively small area, and you'll quickly run afoul of the local wildlife in the form of an Alpha Worg, two Alpha Wolves and two Dire Wolves. These mutts dwell along paths to the northeast and northwest, and if you provoke one group, the other will attempt to flank you. While their power deserves your contempt, their ability to trip and maul characters is something you should be wary of, especially if they get to your weaker characters. You can solve this problem easily enough by stuffing your party behind the rocks along the southeastern and southwestern corners of the map and provoking the wolves with your tank.
However you manage it, kill them, then loot a branch amidst some bushes to the north to score a variety of potions, scrolls and baubles. Another, more obscure cache of treasure can be found along the southwestern end of the area map. If you find it you'll score some gold, gems, potions and scrolls.
Follow the trails as they meander uphill to find Ivar, who is standing in front of some graves, accompanied by three Alpha Worgs. When you approach, he'll warn you off, and if you persist he'll eventually attack, aided by his canine companions. While Ivar is a passable warrior in his own right, his Alpha Worgs are the real danger here, as their Attack bonus is high enough to regularly hit your tanks, and their Combat Maneuver checks are nothing short of absurd. Tripped opponents will suffer further damage due to Attacks of Opportunity - you know how this goes.
Fortunately, you can set up the fight however you wish by approaching with only your tank(s) until Ivar and his worgs turn hostile. Prepare ahead of time with the usual buffs (including Blur, Haste and Stoneskin) then start out the fight with Prayer and Slow to seal the deal. The Alpha Worgs don't have a great deal of staying power, but you also don't need to kill them - the fight ends when Ivar is defeated. If you want to squeeze out around an extra 1,000 XP, though, kill the Alpha Worgs first.
After besting Ivar, he'll regain his humanoid form and engage in desperate, defeated diplomacy. You can finish him off outright with a [Lawful Neutral] moral choice, or you can sate your curiosity by picking the dialogue option "Tell me the truth about what happened to you.". In the latter case, you'll learn his sad story, which is much the same as what you found on his note earlier with the addition of how he became afflicted with lycanthropy. Once that story is done, you can question him about his dubious claim to have "served" his fellows at the Lake Silverstep Village to learn about a bandit gang in a nearby cave, which you should have already dealt with. Finish up by asking him what his future plans are, should he leave with his life (you can also make a futile offer of employment) before ultimately deciding whether to kill or spare him.
If you finish Ivar off, you'll have to continue fighting against his Alpha Worgs, should they remain alive. The experience they give might be a slight incentive should you have refrained from killing them earlier, but sparing Ivar is also worth a hefty bit of experience, plus you get his gear (a Longsword +1, a suit of Chainmail +2 and a Belt of Physical Form +2) either way! From a purely lucrative standpoint, it's most beneficial to kill his Alpha Worgs during the fight, save him for last, defeat him, then spare him.
|Reward: For sparing Ivar|
Note: You can return to Brevis after dealing with Ivar to tell him about Ivar, but nothing comes of it.