Well, I completed the Enchanted Cloak quest today with some muscular help from Jkk, and Sarmangoth on the quest boss (the mage). Turns out whoever coded the quest did it in the standard 'good enough' fashion of lazy coders, so the quest didn't complete. Apparently if anyone other than the quester picks up an item (related to the quest) and drops it, the quest fails. So I get to do it again later. Oh well, at least I know how now. Another hint. If you're exploring in Pauper's, and you pull the big iron ring, get ready for a giant troll to kick your ass.