Online:Royal Revelry

Quick Walkthrough
# Talk to Jester King Emeric east of Daggerfall.
# Collect Glowing Ayleid Bone Dust from Silumm and Dragonfire Dust from inside the Ilessan Tower.
# Return to Jester King Emeric.
# Set loose the Illusion Dazzlers in Daggerfall.
# Return to Jester King Emeric.

Detailed Walkthrough
Jester King Emeric wants to spread joy throughout his kingdom, but his "queen" has confiscated his illusion dazzlers! You must enter two local attractions, Silumm and Ilessan Tower, so that you may find the components the King needs to craft new illusion dazzlers. Dragonfire Dust can be found in Ilessan tower, and Glowing Ayleid Bone Dust may be found in the ruins of Silumm, with lie north of Daggerfall, along the coast. Ilessan tower lies east of the event pavilion. It's not that far away. Just cross the river and enter the run-down tower.

To find your components, you need to kill enemies or find the components in the world. For the Dragonfire Dust, you need to kill Red Rook Bandits. You can also find Dragonfire Crystals and sacks of Dragonfire Dust throughout the delve. The crystals are the more common resource of the two lootable containers that aren't NPCs. The shards and sacks aren't shared, so if you pick up a Dragonfire Crystal, the player beside you will need to wait for it to respawn in order to loot it. It should be noted that the harpies in Ilessan Tower have far less of a chance to drop the dust than the bandits do, so you should focus your murdering efforts on the bandits while looking for dust.

Within Silumm, the mechanics are the same. Get your glowing bone dust from Glowing Ayleid Bone Piles, or by killing Dominion troops and werewolves. The bone piles aren't shared between players. Lootable NPCs and containers can be found all throughout both delves, so just kill enemies and loot crystals and bones to find your components!

When you have your materials, run back up the hill to Jester King Emeric, and give the dust to him. Then stand back and watch him work his magic. Voila! Your king will present the dazzlers to you, in a Sack of Totally Safe Illusion Dazzlers. Take the sack, and head over to the three locations you need to use them at.

The closest location is Daggerfall Castle. Run up the stairs to the place in front of the Castle itself. You will know each location by the many Festival Merrymakers filling the area. Throw three dazzlers in front of the castle, then run back down the stairs and head over to the Hill, which is really just a place below the Guild Traders. The docks are just a short walk away from the traders, down the hill, so throw the hill dazzlers and keep going downhill towards the docks. When you arrive at the docks, throw the last of your dazzlers and return to Jester King Emeric outside Daggerfall's city walls, where he will give you your reward for helping him spread merriment throughout the city.

Notes
Not only are you in open competition with other players for Dragonfire Dust and Glowing Ayleid Bone Dust, but progress is not shared with other group members if you are doing the quest together.
At the release of the 2021 Jester's Festival, the amount of Dragonfire Dust and Glowing Ayleid Bone Dust was halved from 8 to 4.
 
 

Quest Stages