This quest was the very first quest ever in the game of L.O.R.E, back before it was even called Adventure Quest.

You walk around until the moon begins to rise... a dark mist rolls in from the east. An unnatural cold washes over you... and you hear the footsteps of something lurching towards you.

Choose "Investigate" or "Flee".

Flee takes you to an old version of Battleon.
Investigate puts you into a fight with Undead Princess.

The Undead Princess: Thank you brave warrior, for you have freed me, Princess Essinel, from a deathly prison in which I have suffered so long.

The Undead Princess: Now I ask you this one thing: travel to free the spirit of my father King Orthas from the same horrible form. Do this and earn my eternal gratitude.

Choose "I will" or "No Thanks"

No Thanks takes you to an old version of Battleon.

I will puts you in battle with Undead King.

Undead King: I am free from my skeletal prsion at last. I am in debt to you. Accept my thanks and know that you have an ally watching you from the "other side".

You return to Battleon now.

Source

Suikoman444, http://forums2.battleon.com/f/tm.asp?m=2856003