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G'day Alaric,
I had this problem too but Packrat's & Tater's solution didn't work for me.
It turns out that I was enchanting too many things including the dragon arrow & the hook. You cant use an item to complete a quest if it is enchanted, they will not recognise it as the item they need. You would think that Torin would appreciate a +7 dragon arrow but he will only take a standard one. Fortunatly he probably has one on him that you can buy then give him to complete the quest.
I hope this helps you out.
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