King Fahara'jad of Alik'r has sent an army to Alcaire Castle. They claim to be on a diplomatic mission, but the Knights of the Flame believe otherwise. This situation could threaten the very fabric of the Daggerfall Covenant.
Sir Gregory later appears in the Cloudy Dregs Inn, in Wayrest where he tells the Vestige he lost his job after tricking him his wife was seeing someone else. But he's really glad now, as he's got a better job in Wayrest.