I got my Direwolf Totem of Battle today by doing the following:
1. There is no level maximum. A level 105 SK can get this task. Don't have to shroud down. At all.
2. The task-giver is KOS, but won't attack you and is not attack-able. The name of his faction is Coldeye Clan.
a. The kobolds (that you have to kill to raise your orc faction) in the NW caves of the zone are in the same caves as the cages and pups you will have to feed. Might make a label on your map.
b. Need to be at least Dubious to request task. Here is a website explaining faction. http://wiki.project1999.com/Faction
So, after I killed enough, I got the task, ran back to the caves. It updates when you get to the cages even the cages aren't there. You don't have to open them. They are killabable, fed the pups, killed 10 kobolds and ran back for hail.
3. I clicked the Direwolf totem and it gave me the familiar buff. It wasn't blocked by Knowledge of the Past or Soothing Breath because they are AA's now.
I hope this helps. Shrouding sucks. Especially since you can get over level 100 and wreck the whole zone for a bit to get slayer achievements while you're there.