This quest is extremely easy. Teleport to the Wretched Outhouse, and from there, go directly north, up to the Field of Donkeys. There should be 1, possibly more? outside the cave, attack him or go near him to get his attention, then run back down the hill you came up, back to the Wretched Village. When you near the man at the bottom most house, he will automatically take over from there.
Be careful not to kill the donkey.