From LSWiki

Village of Thessalae

The once prosperous Village of Thessalae Has been reduced to ruins and decay. The stench of death permeates the town, as carrion birds circle the village. The once beautiful forest, has become a fowled and stagnant swamp. The inhabitants of the town lying in a mass grave, their bodies twisted and featureless. The forest that has survived, empty, and eerily quiet. No animals crawling around, no birds chirping, utter silence. There is only one remaining inhabitant of the village, the Alchemist Trent, seek him out.

In spite of the horrendous plague which has slain nearly all the living in this village, there is an island of purity which remains. A holy symbol of Mithras will cleanse the corruptness of disease from any with the courage to brave the diseased forests and ascend to it.

If you get lost in the woods with no exit, wander to path

If you can figure out anything with Trent, edit this page to let me know

Something to do with Shadowsbane, the crimson blossom of agony, and something else. Black lotus sitting around and a message about the closet, so that's probably something. Banshee's there, but doesn't respond to anything.