Unless i am mistaken this guy gives a quest for a One charge horse
you say to him
I sense a deep pain within you, ghost. Is there some way i might assist you so that you may find rest eternal (you can skip this part)
then you say to him I will perform any task that will cleanse this place
after that you say I will take it to the knights of truth
he should at this point have given you 2 items a saddle (no rent lore no drop) and insignia of the burning dead
take to saddle to a guy in the pally guild of freeport (should say name after you say last part)
the horse isnt great but its nice for low lvl looking for horse ; )