Hmmm...I've been following the "script" of the story pretty closely..and I just finished with the Frost Giant area...got my _SECOND_ badge...freed the slaves, and all that bit. Then returned to Larrell and gave him the other diary, and gave that dude at the garden the fresh water.

Buuut....where to now? I don't see the next route :)

go east...if you go through the library
through the tunnels where the slaves escaped....should lead you to a clearing with a couple cave entrances...2 of them take u back to the museum while the third (far right) takes you to lower dorn's deep where the rest of the badges are