Cinaid identified the Free People attempting to acquire something from the cave-claws native to the Ettenmoors. He wants you to stop their ability to collect anything from them.
'Cave-claws are drawing the attention of the Free-folk. We do not know why but if they want them we should deny them access. Go into the Isendeep or Arador's End and deny the Free People that which they covet.'
Make your way into the Isendeep Mine or Arador's End and decimate the cave-claws there.