Malgar does not offer any quests. He simply directs you to other NPCs.
You say, 'Hail, Wraithguard Lorekeeper Malgar'
Wraithguard Lorekeeper Malgar says 'Welcome to our homes _____. It has been long since those of the small races have been seen around here. Undoubtedly you know something of the Shades we fight. The Wraithguard have been around nearly as long as the Shades have been. As for myself, I was one of the first to show the courage needed to confront the abominations and find a way to fight them. It was in my search for a weakness in them that led to my [insight]. Or have you already heard my ramblings?'
You say, 'Insight?'
Wraithguard Lorekeeper Malgar says 'Yes, insight born from my willingness to trade comfort and safety for a chance to defeat our curse. The idea took form slowly at first, and as I did my research I hardly noticed the distance that grew up between myself and my fellow Lorekeepers. As I got closer to a workable plan they moved further away. Soon I was shunned, and when I left the city to try my [new magic] on the Shades the gates were slammed behind me, I could never return.'
You say, 'Your new magic?'
Wraithguard Lorekeeper Malgar says 'I have a gift for the magic of the mind, and I decided to use that to learn more about the Shades of Zek, perhaps to gain useful information about how to defeat them. In those early days our numbers were still great and our power had not yet receded from the valley, but for each one we lost to the Shades they grew by one. It was clear that we would soon be overwhelmed. So I came up with a spell that I believed would allow me to tap into the mind of a Shade and perhaps [learn something useful].'
You say, 'Learn something useful?'
Wraithguard Lorekeeper Malgar says 'I learned much. When I touched the Shade's mind its memories flowed into me. My magic was transformed by the power of the Shade and the curse and I was flooded with images of the Shade's past and of the feeling that they carry with them, the hatred of us... their hatred of me. They say that I was unconscious for weeks after, those few that were willing to come out and seek me the next morning. They cared for me in one of the abandoned homes overlooking the lake, for they would not allow us into the city. I had violated the mind of one of our ancestors, and respect for the fallen is one of our people's greatest beliefs. But what I learned allowed me to form and train the Wraithguard and to help [build the wall] that protects the city.'
You say, 'Build the wall?'
Wraithguard Lorekeeper Malgar says 'I learned a little bit about the curse that was placed on us, and from that I learned enough to create a few protective runes. Those of us that were exiled built the wall and placed those symbols on it, as well as on our shields and armor. Since then we have been doing our best to protect our people. In that capacity we can always use more help. If you ask around, I'm certain there are Wraithguard that could use a brave soul like you.