[color:"yellow"]council spoiler, click here[/color]Where did you break the quest?
I never heard your particular problem before, Arnlof - sounds to me like your data file, the one responsible for quests, is corrupt. Did you encounter the Black map problem?
BTW, version 1.34 allows you to reenter the imp world even if you refused - and you only have to give the letter to the Dwarven King, the axe can be brought to Eolus. But not in retrospective.
Kiya