I was searching for a lost wayward traveler by name of Mathis Dalobar. An excruciating endeavor that took far too long, to be quite blunt. When I found him, in my frustration I decided to turn into a werewolf and viciously murder him and slash his body open from groin to sternum. My reasoning was that my quest giver back deep in the Skar confines of Alderaan could never have known the difference...

...I return to tell her the unfortunate (heh!) news and she says that despite not having any proof -- she thinks I killed him and expelled me! How could she possibly have known this? All of Dalobar's items were either stashed in my house or sold to non-Alderaan vendors. Furthermore, because I "broke the rules" I cannot even make amends with the house? Fine, so I skipped and hopped to Hlaalu, figuring they would accept me with open arms given I was a reject from a rival house and the [censored] Nerevarine. BUT I GUESS I CAN'T JOIN ANOTHER HOUSE EITHER.

I have no prior save games with this character. I implore the venerable denizens of this board to help me in my time of need.

Gladstone

I should have posted this in the spoilers forum. Argh

Reported for being posted in the wrong forum. I suggest that you go back to an earlier gamesave and re-run the quest again or search for a http://www.uesp.net/wiki/Morrowind:Factions on http://www.uesp.net/.