I guess this is kind of a spoiler...

So on the road between Pelagiad and Balmora I met an elf who told me about a highwayman.
"He said he was going north." Said she. "So you'll probably find him in Pelagiad."
I am assuming that this is a random encounter and that it's written as if you were south of Pelagiad, either that or someone in Bethesda was holding the map upside down when they wrote the script!! :hehe:

You mean Maurrie Aurmine? She's a a Breton, not an elf. She's just a little confused, she does really mean south. I'm not sure why she has her directions mixed up.

Yeah her! Sorry, not an Elf.
Seems like a sweet girl, I actually kind of felt bad about finding Nelos...

No guarantees, but this little mistake is likely fixed in the MPP. (unless you already have it installed)
It fixes virtually all dialog/quest mistakes.

I actually have it already installed.
Which made me think it was deliberate!!