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My strategy:

1. talk to all NPC in town to gather quests.
2. try to solve as many quests within the town without going out.
3. find new leads in quests, by killing stuff outside of town.
4. repeat as needed.

In Cyseal were a few quests I couldn't solve and a few which brings you to the next map.

In the forest, I am really a little angry about myself or the game, because there is so much stuff stuck in my quest book that is unsolvable.
Like two examples:
give Frederick the blood stone, by the time I got the blood stone and returned to where he lay injured, he was dead. I will never be able to give the blood stone to him and never solve the quest.
The imp in the dungeon, who kicked Frederick over the edge. I used an open look spell to get into the lab and afterwards talked to the imp, telling him to stay there and he is happy. But I still got 'slave and master' open.
The goblin in the mines Dederis or something like that. If I rescue him, he attacks me and I kill him. If I leave him in the prison, the log updates that he found death. If I blow up the prison, he dies and we have collateral damage (at least Scarlett thinks so). The related quests stays open in all three cases. Oh and did I mention that Laurence, the initiator of the quest, is dead too (gave him to the crowd).

There are more, these are just the ones that are fresh in my head. AArrgh :)

I really try to do the quests in a proper order, the first run into the forest, I cleared the mines first and then was stuck. The second I try to become a member of that cult first. I keep starting over until I remember all quests and how in which order they might be solvable.
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disi: snip...
give Frederick the blood stone,
From memory, you use the blood stone to heal the blacksmiths pack best... or at least thats one thing you can do with it.
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disi: snip...
give Frederick the blood stone,
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ussnorway: From memory, you use the blood stone to heal the blacksmiths pack best... or at least thats one thing you can do with it.
I think you mean Alfie, yes this is another blood stone you can use up for quests. Bernie then becomes the new blacksmith in Silvergren, which sucks because you cannot use the forge any more. I've got three blood stones in my inventory right now.