Head to the sawmill over the western bridge to find yet another murder. This time it's two Fellowship-lovin' gypsies Frederico and Tania. Interrogate the onlookers and grab the Serpentine Dagger. Did you see that candlestick? Talk to Xantha about it and then to Elynor. It's a small town, so everyone here knows something. The bartender also knows about Hook.
Next you need to give Elynor the package. If you opened it she'll chastise you for a bit; however the Fellowship are very forgiving people so it makes no permanent impact on your quest. You'll learn that Elizabeth and Abraham have headed all the way back to Paws and to the shelter there. If you've died during your quest you'll have already visited it, it's the place where you come to.
Remember the scroll Chuckles gave you as a reward for knowing The Game? Talk to Margareta and get her to tell your fortune. You'll need to go to Yew to fulfill this part of your destiny. However this guide will continue to follow Elizabeth and Abraham.
You can also add Julia to your party while you're here.
Silver Serpent Venom
Head to the Britannian Mining Co's headquarters. Search the drawer for a key to a chestfull of Silver Serpent Venom. Sell this to the apothecary in Britain (50g/vial).
Also head south to their mines. Here you'll find even more Venom, so be sure to pocket it. Beware, Exult sometimes counts dungeon loot as stolen, so be sure to give it to someone other than the Avatar.
There is also an infinite supply of Blackrock chunks, if you can find the hidden machine that is. Remember, these are lighter than powder kegs but have the same effects, so it's useful to carry a dozen or so for the occasional spot of breaking-and-entering. However be sure to keep at least four spare for some plot-centric vandalism.
North of Minoc (90N 61E) is another mine, this one mostly empty.
There is a trashcan in this building with some goodies. Dig through the garbage until you find a bag, and look in it to find some gold. The rabbit has swallowed some Starbursts, so take those if you wish.
Are Owen's ships seaworthy?
Ask people about Owen, especially Gladstone, Mayor Burnside and Jakher. Eventually you'll find out about Karl who lives to the south (46N 89E). Talk to him and you'll eventually get the ship plans. Show them to Julia who realises the ship is flawed. Now go to the mayor, who immediately cancels Owen's monument. If you talk to Owen after doing this he'll kill himself. [As Hacki pointed out] it is possible to resurrect him, but he'll only do it again. And again. And again.