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The Path Of Righteousness
Go talk to Nyn'rak the scholar. He can usually be found in his room on the lower level of the apartment building, but is sometimes wandering the city or reading in the Hall of Magi. Talk to him about the Gilded Laurel and he will give you a book. It's probably worth reading it to get a bit of the backstory (plus it took me a while to write).
Now go to the bookshop in the Imperial City Market district. Talk to him about the Gilded Laurel and buy the book for 100 gold. Now return to Astarzia. She will tell you to hunt them and kill them in their headquarters. The directions for how to get there are in the second book. Gweden Farm should be revealed a short way south-east of Anvil. Go there and then turn south. There is a ruined fort near the shoreline called Fort Greenhold, which is where they can be found (this is locked before this stage of the quest). Kill the guard inside, then open the gate and kill the rest of the paladins (there are seven including the gatekeeper). One is just past the first gate, two are in the living area to the right, two are on the raised area of the great hall, and the last one is behind the locked portcullis to the left. The paladin in the blue armour in the great hall has the key to the portcullis as well as a note. You have to actually read the note (activate it when it is in inventory) for the quest to update. Now return to Astarzia.
Dremora Non Grata
Go to the Xivilai Cryomancer's quarters and use the 'flattery' option. You will end up with a spell called Xaneth's Key that costs 1 or 0 mana to cast.
Do NOT go to Zadok's room at this point. Return to Astarzia and get the armour, and be sure to wear it all. Go to the council and go down the left path to Zadok's quarters. Make sure that Zadok is outside in the council hall. Cast the spell at the door then activate it to go through. When inside, do NOT talk to the guards, or you will be attacked. Cast the spell at the second door and go through. The secret door is activated by a lever behind some books on the bookcase near the large table. You may have to go into sneak mode to get low enough to activate it. When you pull the lever, you have a few seconds to go through the passage opened up behind the nearby tapestry.
Go right through the tunnel to the manhole leading out. Go through this and return to Astarzia.
Now talk to Zadok, and wait for him to to go down to his quarters. Do NOT go in there yourself. When the message appears, return to Astarzia.
Dirty Deeds Done Dirt Cheap
Go to the Toadstool Hollow cave in Tamriel (follow the compass marker). It is an undead-themed cave. The wood elf is in a side passage in the Toadstool Hollow Doubleback area. Talk to him and then to the dremora that appears. The dremora will then kill him. If you kill the elf before that, you've screwed up.
Return to Astarzia.
Honour Amongst Fiends
Go to the arena bloodworks and talk to the arenamaster. You will be fighting an Ebon Hand guard of level 30, so it's a fairly tough fight.
When the guard is dead, go back to talk to Astarzia in her chambers.
The Battle of Damarask
Go to the Dragonclaw Rock NNE of Bruma (follow the compass marker). The messenger you are looking for is an argonian in a robe just behind the rock. Talk to her and then to the dremora. You will have to fight them both, but the dremora will disappear as soon as the argonian is dead.
Return to Damarask. You will be told you are too late. You cannot go through the Oblivion Gate that appears. Go forward and kill all the Bloodied Maw soldiers in the path until you get to the council. You cannot get in unless you are "out of combat" which means you will probably need to kill all the Bloodied Maw troops nearby.
Go into the council and talk to Astarzia. Ask for your reward. You're now finished!
You can start doing arena fights after completing the 'Ahead of the Game' quest in the main questline. Talk to the arenamaster and you can join the Damarask Arena faction.
There are nine arena fights (none of them scaled to your level), and some are really very hard. One of them offers you two (actually three) different options for victory (you should know the one when you reach it).
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