I've got the sword, but not the gem. The only gem I've found I got from the Earth Elemental King, but I had to use that to fix the teleporter. Is there another gem and where can it be found?
Yes. I think it is in the crowded cave to the south, west of the entrance to the Raanaar camp.
I had the gem, but I had a problem finding the Raanaar Elder after I had both gem and sword. He was wandering between the crowed cave and the entrance to the Raanaar camp.
