Oblivion:The Forlorn Watchman (quest)

Quick Walkthrough
# Ask about rumors in town and hear about the ghost.
# Talk to Gilgondorin about the ghost.
# Speak with the ghost to learn about the Mouth of the Panther.
# Ask Gilgondorin about the Mouth of the Panther.
# Visit the Mouth of the Panther, and discover the wrecked Emma May.
# Make your way through the wreck, taking out the ethereal undead on the way, until you reach the cabin's log book.
# After reading the log, reach the lower level, and defeat the leader.
# Take the leader's key to unlock the last room.
# Free Blakely's corpse, and his ghost appears. He tells you to take the map to lead you to underwater treasure.

Detailed Walkthrough
Ghost of the Shores
A rumor in Bravil tells of a ghost that walks the shores of Niben Bay each night. Speak to the proprietor of the Silverhome on the Water inn, Gilgondorin, to find out more.

Gilgondorin will direct you to Bawnwatch Camp, where the ghost appears each night at 8pm.

Confront a Ghost
Go to Bawnwatch Camp and observe the ghost. After a short pause the ghost will begin his lonely trek around the water's edge. Follow him to a spot near Fort Irony.

Once the ghost stops, speak with him to learn that he was once Grantham Blakely. He cryptically states that he now lies "stuck in the Mouth of the Panther". He will then ask that you release him. Return to Gilgondorin to inquire about the Mouth of the Panther. He will inform you that it is the place where the Panther River empties into the Niben Bay. Several rocks protrude from the surface like teeth, earning the area its name. He will also inform you that it is a treacherous place for ships. A marker noting its location will be added to your map.

Mouth of the Panther
Locate the wreck of the Emma May and enter the ship through a crack in the hull. The wreck is inhabited by ethereal undead (ghosts or wraiths, depending on your level).

After entering, open the door directly ahead. On a table within the cabin lies a log book, whose contents describe a mutiny that had taken place during a great storm. Against the mutineers, the Captain and Grantham Blakely stood alone. When the mutiny succeeded, the mutinous crew sought refuge in the Mouth of the Panther, only to run aground. All perished in the wreck. Make your way down to the mid-level of the hull, fighting past the ethereal spirits of the crew, and eventually to the lower level, where you will be attacked by Gable the Traitor, the gloom wraith spirit of the mutiny's leader.

Free Blakely
After defeating the traitor, take the Small Key from his remains and unlock the final room of the wrecked ship. Within you will find Grantham Blakely's corpse chained to a pillar. Upon releasing Blakely from his bonds, his ghost will appear and thank you. 

thumb|Grantham Blakely's treasure map.
He also tells you to look on the floor for a map, behind the remains of his body. The map indicates the location of some treasure, which Grantham wishes you to find in recompense for his salvation. The map marker will direct you to cross the winding Panther River, heading due east, where you will discover the treasure underwater near Black Dog Camp lodged between rocks. Swim southwest from the boat at the bandit camp, and you should find a group of four rocks on the bottom; the chest is between the rocks.

The chest contains leveled loot consisting of:
One empty soul gem
Two unenchanted rings
Two unenchanted pieces of jewelry (rings or amulets)
Six gems and/or silver nuggets
60-2235 gold
One magical weapon

Notes
There is no need to return to Gilgondorin for information about the Mouth of the Panther if you carefully observe the direction the Forlorn Watchman is pointing; by walking in this direction, you will eventually notice a landmark icon appear on your compass, which will lead you to your destination.
It is not technically necessary to speak to Gilgondorin in order to complete the quest; being at Bawnwatch Camp after 8pm allows the remainder of the quest to fall into place.
You can avoid following the Watchman on his long trek along the southern coast of the bay if you simply encounter him at Fort Irony.
It is possible, particularly if you fast travel to Bawnwatch Camp late at night, for the Watchman to start the trek late. If morning arrives before he completes his journey, he will disappear and you will have to wait to continue the quest until that evening. It is therefore recommended that you arrive at Bawnwatch Camp as close to 8pm as possible.

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