Kendrack's Barracks
You'll begin Chapter Two in Kendrack's Barracks. Talk to the young lady who greets you, then head out into the main room.
All your friends from Chapter One are here: all five henchmen, Aribeth, and a new member of your growing team, Aarin Gend. Speak to Aribeth and Aarin to get your general battle plan for this chapter. You'll need to find two pieces of corroborating evidence that lead to the cult's location in the area.
You'll also want to speak with Kendrack himself. He'll offer to send you on the Bounty Hunt quest, during which you'll need to track down five escaped convicts and return their ears for a reward. Here are their locations: Wyvern is camped out in the Neverwinter Woods, Zor is north at the Green Griffon Inn, Delilah can be found at the archaeologists' camp to the east, Stirge is in the farmlands outside of Charwood, and Yesgar is hiding out in the Port Llast mines. Before you leave, you'll want to talk to your henchmen and choose one to take along with you.
As before, each henchman has a quest. Solve the quest, and they'll replace your previous reward with an upgraded item. Here's what each henchman is looking for and where to find it.
Tomi Undergallows
You'll find the Star of Calimshan in the summoning room of Wanev's Tower. The Ring of the Rogue +3 adds three points to your dexterity and two points to your disable-trap and open-lock skills.
Boddyknock Glinckle
Boddyknock wants a prism blossom seed, which is located on the first level of the Creator Race Ruins. The Lantanese Ring +3 adds three points to your charisma and has a +1 regeneration effect.
Linu La'Neral
The journal of Synth La'Neral can be found on a corpse in the Troll Caves. The Pendant of the Elf +3 adds three points to your dexterity and grants you darkvision.
Grimgnaw
Grimgnaw seeks yet another morbid item--this time he wants a mummified corpse hand. You'll find one in the Tomb of the Arcane Brotherhood. The Amulet of the Long Death +3 adds three points to your constitution and gives you a spell resistance bonus of 10.
Sharwyn
A lock of nymph's hair can be found in the Nymph's House, deep in the Neverwinter Woods. The Belt of the Performer +3 adds three points to your charisma and two points to your perform and persuade skills.
Daelan Redtiger
The axe Daelan seeks will be found in the third level of the Mutamin's Challenge dungeon in the Green Griffon Inn. The Amulet of the Red Tiger +3 gives you a three-point increase in strength and makes you immune to fear.
Aribeth
In this chapter, Aribeth also has a tale to tell. When it's finished, she will give you a ring. This ring will be helpful (but not necessary) much, much later in the game.
Aarin Gend
Women can speak to Aarin and start a romantic thread with him. He will give you an amulet that can cast Light an unlimited number of times a day.