Okay, Im an idiot. I started chapter 3 and decided to explore and level up a bit before going to the temple since I thought it would be another "dungeon-like" area and not a town. So I walk around and do a few quests and then go in. Now I see that the quests are linked to a rank system but I dont think I get rank points because I already did them BEFORE coming here. I lost the merchant quest in the tavern, it wont allow me to accept it, and a few others. ARGH!
Also, I accidentally dropped the curse scroll for the witch while trying to move it between chars. and I cannot pick it up again, so another quest lost.
Hope others see this so they are forewarned and dont make the same mistakes as me.