Try sending the chalice and drudanae to your battle tower, then teleport back and remove them from the chest, and return to the Dragon Cliff Castle. Whatever the glitch is with Jedediah not recognizing the items, removing and adding them to your inventory and/or reloading the fjords should get the quest working. Someone else ran into this problem awhile ago, but was able to fix it that way.
With the quest to kill Saul you do not get a reward for freeing him (though there is an associated quest if you picked Kenneth as your trainer), and unfortunately there is no way to find proof of his innocence. The slayers don't know of Saul's escape when you first return to the camp; you can tell Tilian. I think you can find Saul again in his house in High Hall, and kill him to complete the quest.
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