Quest from: Georg Redfell
War Mossfeld is standing nearby wounded (2) - talk to him. You can go to Merring to grab some herbs and rescue him or finish him off (3 Evil points). Now that your quest is to gather some men, it's better to help him after all.
Go a bit further to the South and defeat more enemies. You'll see a cut-scene in which Amie gets killer. Well, that's it for her. Talk to Tarmas and then try to convince the following men to join the militia: Wyl Mossfeld (3, give him Merring's herbs), Lazlo Buckman (4), Ian Harman (5, you have to persuade him or even hit him in order for him to join). Open or smash the door to Pierson's house (6) and inside talk to the proprietor. When he leaves you alone in there, you can just as well rob his house.
Enter Tarmas' house (7) and take everything you can find (the mage actually let you do that by giving a small side-quest of his own). There's a trap in the closet, but it won't harm you too much.
Continue on and talk to Pitney Lannon - cure him using Merring's herbs. And that completes the militia. Near the flaming barn (8) you'll see a wounded enemy. You can get some evil points for threatening and finishing him.
Talk to Georg and the battle will begin. When you defeat the two waves of the enemies, some evil dwarves will enter the nearby building (9) and you'll have to choose whether to go and help the civilians or hold your ground. It's generally better to choose the former. Defeat all the enemies in the house and talk to the children in there. If you talk to Retta before the fight she'll let her guard dogs help you. Before leaving the building look around and grab any loot you can find.
HINT: The children rescue is a separate quest called Starling Standoff.
Defeat the rest of the enemies. Daeghun will appear and help you hold off the final wave. A Cut-scene will commence, in which foster father will order you to go to nearby Swamp (10) and retrieve a certain artifact. Before leaving the area talk to Tarmas to buy and sell.