There is a mysterious jewel that teleports you very close to the Hall of Flames.
Watcher of Valakas Klein asks you to defeat Valakas and to fill the empty crystal with the fire dragon's energy. Go to Valakas's Lair, defeat the land dragon Valakas, and bring back the crystal filled with the fallen beast's energy.
You defeated the fire dragon Valakas and filled the crystal with the beasts energy! Bring it back to Watcher of Valakas Klein.