I did the South Karana event which spawned Finnelzi, Rendolf, and Tehana. I loot the crystal fragments on them and make my way to Freeport and hand them in to Shana Liskia. However, she tells me something along the lines about not trusting my motivations and having better things to do and hands the fragments back to me, except they are not the fragments with the names of their former owners on them, she hands me three plain "Crystal Fragment" back.

I didn't get the bag back from her. She conned indifferently to me. Could faction be an issue here? I'm not really sure I understand why I didn't get the bag. I'd appreciate any suggestions. :)

Did you have an empty bag slot? I don't remember if the bag shows up on your cursor or if it is put directly in your inventory, but that could be it.

I am almost 100% positive that I had an empty bag slot, especially since I was anticipating getting a bag. Even if I didn't, wouldn't she have still used the correct dialogue instead of telling me that she didn't trust my motivations and that she has other concerns? Unless of course I would only get the correct dialogue if I had better than indifferent faction, so that might not even mean anything.

I tried doing the South Karana event again last night, but despite getting the hasty note, they did not appear. I think I'll have to destroy my three crystal fragments and try again. Hopefully they will appear if I don't have the fragments on me any longer. I read a post in Allakhazam which said this would be the case.

Although I was sure that I had a bag slot free, there is a teeny bit of doubt that I could have been mistaken, so I'll try to get those fragments again and make absolutely certain that a bag slot is free. I have my fingers crossed!

Well, I did the whole South Karana thing over again. Looted the crystal fragments, then went to the enchanter in Freeport, handed the crystals to her again, and this time is worked fine. I got the crystals back and the bag, and she said the dialogue that the quest guide said she would say. I am at a lost as to why it didn't work the first time, but at least my quest is back on track now!