After your attempted assassination at the end of the Oblivion plugin Windfall quest A Decision, your faction, whichever you are now a member of, decides to get you out of sight, and out of danger from the other side, for the time being by sending you out of town to look for a relic.
This quest is identical for both factions, except for who you get it from.
Credit: ed_conn and Bethesda SoftworksRamonius or Gruff suggests that you get out of town for a while to avoid any more assassins. Each suggests you go to the Ayelid ruin of Hondo which they marks on your map. They also gives you a Ceremonial Elven Dagger which they think may be useful.
"The Knights/Righteous are sending me to search the Ayleid ruins of Hondo. There may be nothing there but a few bandits. This job is more about getting me out of town for a while. The Knights/The Righteous need time to find out just how dedicated the Righteous/Knights are to my personal destruction. They gave me a dagger found in Hondo to take along. I am not sure what use it will be. It looks like an ordinary dagger to me, and I have better weapons."
Credit: ed_conn and Bethesda SoftworksGo to Hondo. There are two creatures, probably Marauders, outside the ruin as well as some inside. In the south is a room with a statue called the Gatekeeper which can be activated. Doing so causes the Gatekeeper to ask if you wish to enter the tombs. Answer yes, and the statue asks if you want to pay tribute to the dead. Agree, and offer the Ceremonial Dagger.
This opens a door in the south wall. Make your way through the Daedra infested Hall of the Tear to the massive Hall of the Royal Tear, also Daedra infested. There are two Altars on the main floor of the Royal Tear which have Blocks on them. Pushing the Blocks will open the Gates that block the way. In the final area is an Amulet of the Shadows. Take it and your log updates.
Credit: ed_conn and Bethesda Softworks"This looks like a treasure worthy of starting rumors. The question is, should I tell Ramonius/Gruff about this find or not?"
Return to Ramonius or Gruff. In each case even if you tell them about the Amulet they let you keep it. Ramonius promoted you to Captain in Varo's Knights and from now on you are to report to Brend. When you speak to Brend you can tell him that The Saint is his brother if you want, but he seems to find out somehow even if not from you.
Gruff promotes you to Revolutionary in The Righteous, and tells you that from now on you will be reporting to the Saint, or Stilus as he is properly known. Gruff gives you a key that opens the house for sale in the Slums, telling you that the Saint can be found in the basement.
Apparently the missing Varo Family Ring has been seen, and you will need to obtain it in A Discovery.