It says Diplomacy increases rewards for quests, but which quests? Is clearing ruins etc. considered a quest? Or only the special quests you get from time to time from shops/potential allies?

I saw when you clear a ruin you get 2 rewards, one from the spoils of the battle, then one final (usually bigger) reward. What is affected by Looting skill and which (if any) by Diplomacy?

Until now I assumed that Looting increases the spoils of the battle (1st reward) and gives a chance to steal hero items, Diplomacy affects 2nd reward in all quests (also clearing ruins), and conversation/bribing options. If it's so Diplomacy seems much better to me, but if it affects only special quests then it is less useful. Somebody understands/knows something more?

as far as i understand looting effects the 1st and the 2nd reward you mentioned

quest reward is the stuff from the quest you mentioned e.g. shops etc.
but you can also get quest from that crystal you can build in your stronghold (after a few shards you should be able to build it) just enter it like a building with a hero and you can get a quest
as of now i can only get easy quests there. those are like: kill 10 skeletons etc
once you did it you can go back and claim a reward (gold, gems, item) extremely useful for early money problems and later it gives items that are better than the standard stuff

CARE !MORE SPOILERS! CARE

i try translate from http://eador.com/B2/viewtopic.php?p=6137#6137

Diplomacy events

If u attack neutral province:

Free settlement - if Diplomacy>=1 u can bribe guards 2 times cheaper (30*lvl province instead 60*lvl province) in the case of bribe hero earn 20 exp
Local lord lands(!?)(i can`t translate russian name type of province, and google can`t help. this province have swordman/horseman in guards u can identify i think) - if diplomacy >=2 u can bribe guards: 300g - 30% success(50 exp), 600g - 60% success(40exp).
Magic forest - if Diplomacy >=3 and Karma >=0 u can bribe guards(50 crystals). 100 xp
Nomad steppes - if Diplomacy >= 2 u can bribe guards 33% cheaper (100*lvl province instead 150*lvl province)
Wild forest (Dark Druid guard!) - if diplomacy >=4 u can bribe guards for crystals(long dialogue passing through "Will feed your beasts" and ended proposal crystals): 100 cry - 40%, 200 cry - 100% (all variants - 200 exp). if u bribe Dark Druids - population in province can`t raise
Elf forest - if diplomacy >=3 u can take quest for alliance(if Karma 0-49). if Karma >=50 u can take quest without diplomacy
Dwarf Hills - if diplomacy >=1 u can take quest for alliance (if Karma 0-49). if Karma >=50 u can take quest without diplomacy
-if dfplomacy >=4 u can take ally quest if unrest lvl smaller -1(Dark Karma?)
-if diplomace >=3 u can give 3000gold and apply ally instant, without quest
Orc Tribes - If diplomacy >=3, Karma lower -50, and hero army>guard army orcs accept ally without quest
Goblin lands - if diplomacy >=1 u can pay 2 time cheaper if goblins agressive (if hero army < goblin army or good Karma)
if diplomacy >=1 u can bribe guards 2 time cheaper (25*province lvl instead 50*province lvl) if army hero > goblin army and Karma 0 and bad
if diplomace >=1 u can accept ally without quest for 2000 gold, if Diplomacy >=2 - 1500 gold, if Diplomacy>=3 - 1000gold
Troll Swapms - if Diplomacy >=4 u can take province for free. 100 exp. -3 Karma

another events:
Tree of pixie - if diplomace >=1 u can guaranted hire pixie/dryad (Karma >=0). if without diplomacy - 50% hire, 50 gold - 100% hire chance
Harpy nests - If diplomacy >=1 u can have access to harpy hire for free. Without diplomacy - 50 gold or 10 cry
Brigand Ambush (exploring province) - if diplomacy >=2 u can talk. 70% success redemption for 200gold (if failed - battle), 100% - 400gold
Unicorn meadow - with probability 30/(100-diplomacy*10)% (for example: withoit diplomacy - 30%, if diplomace 5 lvl - 60%) u can train Unicorn (0-4 lvl). need good Karma and slot for t3 unit (occupied or vacant - no matter)
Site Secret Monastery - if u try robber monastery u can take 200-600 gold with probablity 40/(100-diplomacy*10)% (40% without diplomacy, 80% - diplomacy 5 lvl). if failed - battle

Copyright from http://eador.com/B2/viewtopic.php?p=6143#6143

Thanks for the info.. then I assume Diplomacy doesn't affect common rewards but it opens all these options..

Diplomacy increased ONLY quest and arena rewards

How do you fulfill a quest received from the crystal building?

If you mean the "kill 8 skeletons" variety: the hero who took the quest must kill a total of that many creatures. It doesn't have to be in a single battle, and the hero doesn't have to make the kill personally (any member of his party killing one of those creatures counts toward the total). Other heroes do NOT contribute toward its completion when they kill that creature type.

Once you've met the target, that hero can return to the province and enter the building again to finish it.

Thanks a lot. Yes, "that variety" of quest - I was quite scratching my head thinking where the heck will I find ten imps!? Now I just have to send my hero to search graves and temples infested with demons.

@Maseta: thanks for the useful info.
Do you know what the specifics are for centaurs?

Yeah I hate how Imps are found under "Demons" in lair descriptions. I hate doing Imps (9) with any but a lone Warrior with High Resist or the "Astral Energy" spell to raise the resists another 3. Imps have to be the hardest I have gotten under the "Low" cattegory.

Goblins (15) - These can be ok if you have a nearby Goblin Province to take over as that adds like 5 kills right their. The rest usually have to be found mixed with "Orcs"

Skeletons (15) - Tough little buggers they are sadly they get mixed in with Zombies and can be found under the "Undead" description.

Brigands - This can be annoying as well because they are always mixed with those agility assasins and usually a Bowmen or 2 as well.

I think I ounce also sadly got Swordsmen as a mission and never really got around to doing it because they always get to mixed up with Pikers, Monks, Knights etc...

@EvilLoynis: Imps are easy, they and skeletons and zombies are the main low level grind for XP on levels 0-5. They will be listed as demons though, which could potentially contain more powerful and deadly demons.

Goblins - can end up with some crazy powerful monsters likeSlugs, medusas, and IIRC even a hydra.

Skeletons - pathetically weak and are the easiest for early XP. Also they are never listed as skeletons, instead you will see "undead" defenders which when you engage you can see they are made up of skeletons, zombies, etc.

Brigands - those are actually annoying because they can vary a lot in power.

Goblins like to mix it up with monsters - basilisks in particular, which is annoying. Still it's usually easy to find enough goblins with at most orcs for support.

Skeletons are the easiest of the quests, I think. Zombies are also very weak, and you can usually find plenty of them with just those two.

Brigands are extremely annoying because you usually find so few of them, and mixed with stronger units.

Imps are also annoying, because they have high resistance and ranged def (IIRC), so you need to get up close and smack them. And their magic ranged attack hurts most units a lot. Still they are not too bad.

Shamans which I've gotten a few times are really annoying to find though, and once I even got Sorcerors, which sucked big time.

I don\t know why, but I had particularly bad luck with imps. They have been accompanied by demons and devils most of the time. I'd have liked any of the other guys, even swordsmen, rather than imps. On the other hand, when they're with devils, there's a ton of them (imps, that is), but my hero is too weak to face devils and demons - it's a mage. I have a warrior of the same level that is cleaning up devils with little problem, so I don't think I'll be recruiting mages from now on.

By the way, do you know of a trick/cheat to overcome the Level 30 restriction?