Are you an obsessive hoarder of rare items? Do you pay high sums for a durin axe (just because it is rare) or camp hours to win a nihonto? Balduin is just like you. If, and only if, you've completed every other quest to collect special items, he'll challenge you to find one more... but don't bother asking your friends what he challenged them with, your quest could well be different.
Despot Halb Errvl has been sitting alone in the Mithrilbourgh Throne Room for too long. He's become really paranoid about rival armies, and is asking for help killing hundreds of enemies. He doesn't care where you find them, so long as you kill as many as possible. Others who ask for your help in for example cleaning a cellar of spiders, really will check now that you killed spiders from their cellar and not just any old spider. They realised that we've been deceiving them a little in the past with our proof of kills!
The pizza baker Leander is now more responsible: he sends his employees only to locations that he is confident they can survive in. But the food situation at Ados Wild Life Refuge has got worse: they are now in need of weekly supplies. Katinka will ask you to bring food they need for the animals in the zoo, and to thank you Dr. Feelgood will heal your pets and sheep and might sell you some cheap medicine. If you are not interested in feeding the animals to get cheap potions you can still buy them elsewhere. There is Carmen in Semos, and in Fado is Sarzina, who joined the potion market, selling mega potions.
Last but not least the user interface was improved so that status icons for being away or eating are also displayed in the side panel. Flying arrows are now visible in the world, and if you'd like supplies of these to experiment with you can buy them from Mrotho and Diehelm Brui. Missiles are effective too, and early experimentation has shown that fire shuriken work somewhat better than snowballs...