I was trying out the demo today, and found a very odd issue.
I was in the second town (talking to villagers, trying to track down the dragon) and I completed one quest where the farmer's wife left him for the blacksmith. I then returned to the farm, went into the farmer's house and looted everything -- including his diary (reading it, of course). I exited the farmhouse, and I saw a guy with a quest marker above his head! Not thinking about who it might be (just interested in picking up a quest) I talked to what turned out to be the farmer. Pretty much all of my conversation options were me gloating about how I totally know he's a murderer, and I'm gonna go tell the guards on him.
The farmer is enraged and attacks me. I don't want to kill him (I'd rather go tell the guards and have them deal with it), so I retreat back to the town where I enter the barracks and talk to the guard captain. He basically says "why did you have to go and kill the farmer" and I can only insist that it was in self defense and show him the diary. He sighs and says he wishes I'd come to him first rather than taking care of it myself.
At this point, I open my quest log, and it's still stuck on the "you can either confront the farmer or report to the guard captain" and can't advance further.
I go talk to the farmer's wife, who's still living with the blacksmith, and though she's distraught about the death of her former husband, we both seem to have forgotten the fact that she'd already left him by the time he was killed. I can ask her "what are you doing here?" and she says that there wasn't much point sticking around the farm by herself now that her husband is dead.
The whole game seems to believe that I killed the farmer when he attacked me, without actually giving me quest credit for doing so.