Having spent a good deal of time trying to do this quest, finally completing it, losing the item in a roll back, coming back to do it again, getting to the end and it bugging despite there being a gm there, and finally still not having the item, I would like to suggest for the convenience of the masses that, even though it's not blizz-like, the escort portion of this quest be replaced by a simple turn in.
I know it's scripted correctly, because I've seen the whole event work, but sometimes Taelen just doesn't want to do anything anymore and stands there like an idiot. So I guess until that's fixed it would be a lot easier if people could just turn it in.