This quest is given by Captain Chugga who is located in a pub in Jeel. He will speak of his ship "Lady Hawk" at the docks, if you insult the ship and ask if it is seaworthy he will slap you and say he "Likes your moxy" so will teach you dagger combat. He will ask you to give him 500gold for the training payment. So stand next to him and drag the 500 gold onto him and he proceeds to teach you the ways of dagger combat. You then receive the 2000 Smallblades experience.