The bandit area is called bandit hideout? Where exactly on this map i can the find bandid with death man's hand? I already have the hand of glory and completed the gnome story line. There is no Peltar to talk to @ this point i guess i must do the bandid area quest first.
Peltar is in the big house in town during day hours and in the tower of the castle at night.
If you have the hand of glory then you completed the quest.
In Zardal's home you find a key on the first floor after you have found in the conversation with the inn keeper that he is a liar. The key opens a locked chest in the same upstairs room with the journal.