OK I worked through the Crypt of Dalnir, got all the ingredients, talked to/killed Baron Dalnir, got the key. I got a message opening the chest that I have to have completed Triumph of Fear. I can't find it in my completed quests, but I know I had to have done it because I did the White Dragonscale Cloak quest which is supposed to come right after that. Anyone else have this issue?
You need to have completed the Greenmist HQ Timeline for Kunark Ascending: A Chosen Weapon. You don't have to have the weapon with you, but you have to have finished that quest.