After reaching the second to last step of the quest, I killed the Dreaded Ursine. My journal updated and said, "With the Dreaded Ursine dead, you can now freely use the forge." The forge has the correct graphic, but is labeled "Ursine alchemy unit." I can't remember if this is what it was called on live, but I assume so.
When right clicking on the forge, the quest does not advance and the Vial of Variskel remains in your inventory. (You also can't /use or interact with the item in any other way.)
1. Acquire quest from Kinney in Connla
2. Complete the first several steps in Treibh Caillte
3. Kill the Dreaded Ursine and attempt to use the forge (or the Ursine alchemy unit.)
Activate the Ursine alchemy unit near the Dreaded Ursine in order to complete the quest.
http://camelot.allakhazam.com/quests.html?cquest=681
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issue was resolved by Gnome
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