You can finish it if you did the two steps in incorrect order, by convincing the crier to work for the other showman before you talked to Lillian BUT, to actually talk to the head in that case you need Strenght of 11. It cannot be done with strength of 9. I didnt have anyone with str 10 to check, but it works with 11. (which doesnt make any sense, of course)
Which makes it finishable but not in the best or proper manner, for an RPG sub-quest.
The rest of the problems with it mentioned above remain. (plus the loot is very low quality which, considering those are ghosts and the amount of traveling you need to do should be better. how about nick gives you unique treasure map? - but if you leave him where he is he gives you ... increase in lore by 1 point?)