I've had these issues with the saves as well and the priest is wandering the graveyard after I've given him the scrying stone(which I stupidly forgot to inspect and so I missed out on fighting the ghost) and he won't give me another quest or even talk to me. I noticed I went to use a Bow even though I'm a warrior mostly and the thing deleted itself from my inventory and didn't equip. Are there any reasons to become an xbox live gold member for this particular game? Just wondering.
Good luck getting out of farglow! That would suck to have to start over especially with the pacing of this game. Anyone who wants to chat on Live can add me Brokenblade86.