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“My investigations of the Bloodthorn Cult's activities have convinced Chief Tazgol that they threaten the Orcs on Betnikh. Lambur is leading me to the Orc forces at Carzog's Demise.
— game journal
The quest is rather simply solved: One must enter Carzog's Demise and recover the Ayleid Relic/Artifact. For this, the crystals must be activated. To open the gate, the player will get help from Ayleid spirits. One must reach then Vardan and kill him to recover the relic.
Note
One gets the choice in the end to either dispel or keep the Ayleid Artifact. If kept, the artifact appears in the inventory as a quest item with the title 04449 09 10 Artifact. This obviously is a mistake.
The player should ask Captain Kaleen and Lambur what to do with the artifact. Lambur will be against keeping it, as it brought great misery to the Orcs, while Captain Kaleen sees great fortune in it and considers it a powerful weapon against the enemy. She'll react rather disappointedly if the artifact is destroyed and one talks to her afterwards. The outcome in the end is similar with Chief Tazgol, he'll show some regret about the still intact Artifact, but will thank the player for their support against the evil forces. No matter what choice is made, he will decide to finally join the Daggerfall Covenant.
Other NPCs may be consulted prior to making a decision about the fate of the Relic. They are: Master Kasan, Neramo, Jakarn, Nicolene and Crafty Lerisa. However, these NPCs must first be recruited before they can be consulted.