My quest is to talk to Livesey in Skull Cave. Livesey was hiding in some bushes and he gave me an assignment to do. To find him you need to follow the arrow. When I found him I talked to him and he told me who to look for.  Then, I looked for a hidden passageway. After I found the hidden passageway, there was a section that was really deep with water.  I got into battle, and I had to activate three posts to drain the water in the cave. Once the water was drained I picked up the amulet and then I had to take the amulet to someone else.