strongbox difficulty

I talked to the innkeeper at Drop Ye Anchor in Blackroot about lowering his price and got the quest to retrieve his strongobx from the local smith. I talked the smith into giving it to me for 50 coin; then went back to the innkeeper to complete the quest but I can't get any dialogue that allows me to give him the strongbox. All i get is the rumor , 25 coin for a room, and I'm leaving lines. Am I missing something?

 

Are you using a patched game?

 

yes. I installed the offical and drog patch

 

Did you actually get the strongbox? The smith only gives you a key, you have to take it out of the chest nearby.

 

Yes, i have the strongbox in my inventory. I had a save prior to accepting the quest so I reloaded and tried again with the same results.