Waltorious: The Lady of the Lake gives you a talent if you solve the Paths of Destiny quest in a certain way. Annoyingly, she tells you to "come back later" for it so you have to leave Black Tern Island and then return again to get the reward. And you have to do this BEFORE tackling Dagon.
The OP seemed to have an issue with this because he never got the reward and therefore the Paths of Destiny quest was never officially solved. My guess is that this is what was preventing Berengar from appearing, but it's possible there was a different cause.
I don't know what's the deal with original poster but many times people said that come back tomorrow.. or "i'll work through the night" and that dwarf was sleeping when I came about 2 hours later to get my armor. =) And some sidequests were a bit vague. They would be there the whole game. And V chapter.. no storage. That's why I didn't complete the dentist thing. One freaking tooth. And cockatrice contract failed at some point. Didn't even see them anywhere.
But I did everything else I could find.
Main thing is still that I played the game.
And when the credits rolled.. just when the music was getting good, then came main screen. Anyway.. Game was great. =P