You need to rescue Zandalor in order to get the council of seven quest. Then you will pick the councilmembers one by one (starting with Human, which means Mordaneus). That's why there is no imp in the inn in Verdistis. And that's why you haven't got the axe of stonequest. The axe quest is the quest you'll have to do in order to get the dwarven councilmember (who is the seven:th and last member).
Übereil
PS wellcome to the forum <img src="/ubbthreads/images/graemlins/wave.gif" alt="" /> DS
