http://www.runesdatabase.com/quest/423861
Old Blacksmith Hansen is not giving tools or runes to embed anything into any gear with any consistency. I had to take a new character all over the map and then when I tried porting the character to Silverspring, it suddenly dropped into my bag. I have leveled a few characters before and usually when that item from this particular quest is either missing or accidentally thrown away, there's an option given by Hansen that says "Oops I have misplaced the items you gave me" allowing you to complete the quest and then go to the housemaid quest. That option does not appear to be present, causing the whole line with the "bear and the bard" and the traitor quests afterwards to be unlock-able. I thought it was just one or 2 characters of mine that had this problem, so I deleted them being low level ones, and made new replacement ones hoping this would have been fixed with their replacements, but it has not.
Edit: So, I found another quest to do on the new character, "The differences between brothers" and then the one immediately following that one, waited another 10-20 minutes in zone (doing nothing, basically twiddling my thumbs) and once again tried to port to Silverspring. The quest item
http://www.runesdatabase.com/item/209307…7s-simple-drill dropped into my character's bag along with an Endurance I rune while standing at the snoop. Finally opening the "Oops option".