The quest is much more simplistic than it seems, but of course until you've done it you wouldn't know that haha.
Step One - Talk to the Wizzycat
Step Two - Investigate the peoples by entering their trespassing areas.
Step Three - Talk to his Widow once you've found "incriminating evidence"
Step Four - Leave town!
Blacksmithing 1 let's you repair weapons with the repair hammer, always found inside the locked door of the crab inn 2nd floor (requires lockpicking 2 to unlock it, it's in the middle chest on the north side every time).
Lockpicking 2 does everything you need in town, ideally find a lockpicking +1 item to go with your 1 point you've invested on some character.
Couple more points - The Smelly clothes are not all obvious. The shoes, for example, look like ordinary armor 3 footwear with no special border. the smelly panties, however, re obvious - feel free to remember places have more than one floor!
But yes, the only way to play this game is to remember you're investigating a crime, not playing dress up with dollies. Don't be misguided thinking breking into someone's home is wrong... it's your job for heaven's sake!
