Once you are done with the first part of the quest Pell will give you the Shadow spell.
The second part of the quest is to find a gift for Lahren to give to Pell. The Sapphire Ring usually does the trick.
After Pell gives you the Shadow spell go speak to Olon again. Olon will suggest you go see Friar Massus who is in the Chapel on the first floor of the Outer Keep and Elarath who is on the second floor of the Outer Keep. Both should have some information about the Village. Olon will also ask you to find a house that is fairly intact in the Village. In the house will be a chest, he wants to know the condition of the chest.
Friar Massus will give you the Chalise of Life quest. If you haven't yet speak to Brother Mo who can be found in the Infirmary, he will give give the Herb quest.
Elarath will tell you a little bit about the Village and ask you to find his Amulet. Notice that he mentions Elazar!
Before you go get some more training from Elarath and Mudam if you have any TP's left.
On your way through South Gate stop and speak to Elazar.*G* If you have any TP's see if Lucan has any more training to offer.
Now we are off to the Village.
When you enter the Village from South Gate you will be in Village 1. You can do the maps in whatever order you want. I suggest you do the Church last but it is up to you.
Remember to tap spacebar and arm yourself. In order to loot you will have to disarm.
The best tactic I have come up with for the Village maps is to advance a couple of steps at a time. This way you don't get a group of foes after you all at once. A lot of the time using this tactic you will be able to see the enemy before he see's you.
I've noticed that the Flame spell does better against the Sha'ahoul than the Frost spell.
On this map you will find some Sha'ahoul Scouts. One of them will be carrying a Scroll with Unknown Writing, this is an item you will want to keep.
In one house you will find a stairwell that is blocked with rubble, as of end of chapter three it is still blocked.
Beside this same house is a yard surrounded by a rock fence. In the yard you will find some unknown scavenger creatures who will later be named Mercwogs. After you have defeated these creatures find a bush that highlights purple in the same yard. Click on it and you have found the Herbs for Brother Mo.
Once I have cleared this map I usually head back to the Citadel to give the Herbs to Brother Mo and to get some more training. If you do go back remember to tap your spacebar and disarm yourself. Also another good thing to do is set your spell to Heal just in case you happen to right click someone. I have done this myself and have had to reload a previous save because I fireballed or frosted somebody.
There will be more Sha'ahoul Scouts on this map, some of them will be wielding bows, so be careful. As soon as you can get a bow and quiver for yourself, it is a handy weapon to have. Even if you don't use the bow the quiver has some good defense stats.
One of the Sha'ahoul's will be carrying a Scroll with Strange Writing, this is an item to keep.
Another Sha'ahoul will have the Sapphire Ring, Lahren might be interested in it.
Two of the houses will have stairwells, there be some Giant Spiders to defeat when you go down them.
You will find the Church on this map, I'll cover it a little later in the walkthrough.
In the Cemetary beside the Church you will find some Voreworms. Here is how I defeat them. When I get to the Cemetary entrance I stop and run my cursor all over and watch the little message window at the bottom of my game screen. When the cursor passes over a Voreworm it will register in the message window, you can't see the Voreworm nor will there be a red highlight but it is there. Using your message window and cursor target the Voreworm with bow or spell. When they are first hit they will become visible and let you pot shot them until they are dead. This only works if you don't get to close. After you defeat one advance a couple of steps and repeat. You will know all the Voreworms are defeated when you get some TP's.
Lahren will accept the Sapphire Ring. Then go tell Pell that you found a gift. Once you have done this Lahren will translate any Scrolls with Odd, Strange, Unusual, and Unknown Writing on them.