At the southern end of the graveyard, south of the grave of Ezelkir, a high perception character will spot a patch to dig up where you will find a book called The Legend of the Weresheep. The patch of ground is a mound but has no gravestone. It lies just in front of the crypts for Madame M. Montgomery and the "Tomb of unknown ambition". When you read the book, you will begin the quest of the same name, The Legend of the Weresheep. This quest continues in the land of Faery.