After you complete The Arena quest, Lady Grey will be waiting to speak with you near her mansion in Bowerstone North. Go there and speak with her. -- cut-scene --

Head to the shop here and purchase a Black Rose. Return to Lady Grey and give it to her. -- cut-scene --

To continue, you need to own a house. If you already own one, just speak with her again. Otherwise, head into Bowerstone South and purchase the house for sale near the schoolhouse. Then come back to Lady Grey and speak with her. -- cut-scene --

Next on the to do list is find her missing necklace. You need to go around town and collect gossip to find out where it is. Speak with the guy next to the exit to Bowerstone South first, then the man to the right of the shop, then to the man inside of the shop, and finally with the man on the second floor of the building next to the exit to Bowerstone Jail. Seems like the necklace is in Oakvale, to teleport there.

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