Boy I don't know how I missed it, but I did. Anyone have any idea where it is, the shroud which the dragon asks you to give him for the sword? Searched high and low and any any help would be really appreciated.

you get it after killing haleabus and talking to D'soto. to the left of the throne is a little room with 2 chests.. it's in one of those.. make sure you get the secret word from D'soto as well