Dethmold sends me into the dream. I fight the harpies, get to the hideout, and I am told to follow so I don't set off any traps, and then I am back asking for one more time. This is a continuous loop> Is it I am not following in the exact path, or what? I have not been able to figure out what might be wrong.

Yes, you need to be very careful following the exact path Auckes takes. (or was it Serritt?)

Indeed. If you set off a trap, the scenario fails, and you'll have to start over again. It's very important to follow his steps exactly, but you should be able to discern the traps on the ground if you look carefully. Also, remember that you can save your game at any point in there, so make use of that so you don't have to replay everything if you fail.

Try using cat as it is easy to pick up the traps.

Just avoid those traps and follow Serrit.