This quest is really very easy if you give all the key words to Khmoram from the start. I believe that they are 'help', 'lame', 'walking-stone', 'lost'. To reach the lame guy, go 10n 3e 5n, (3 or 2e) and n. If you say all the right things, he'll tell you to go to Quildar. Everyone knows Quildar.. few know that he is connected to Khmoram. That's why he's quest info.
17w, n, w, enter gives you Quildar, the peaceful old man. Say 'help', say 'Khmoram', say 'lost'. He'll tell you what to do. In case you've forgotten, you can skip the Quildar portion. All you need from him are the words to open the door.
Once you've spoken with Quildar go out, e, 3n. enter. search. get key. unlock door. open door. (did I mention you need at least two lit torches on you?) e, say 'Magic is never one-sided'. The rest of the world continues in e and d directions. Read descriptions of rooms..
When something is "peculiar" about the north wall, examine north wall. If the rope is not red, then touch it. If the rope is red, DON'T touch it. There are yellow, blue, and green ropes you must touch to get through. Down the tunnel in around the middle are exits n and s. You may need to kill the guard n of there and get his gem, but I don't think you have to. Continue e. An apprentice guard should be waiting. Kill him and continue e. When you start going up, keep looking for those ropes. When you've reached the top where you see Khmoram's magic rope hanging in the clouds, search. Get the glowing stone.
Return to Khmoram, give him the stone, and everybody's happy.