Ugh, so I have this weird bug in Shilo Village that makes it so that the quest doesn't light up in my quest log. It just stays red no matter how much I talk to Mosol Rei. Frustrating!!!!!!!!!!!!!!!!!
I had that too. just continue with the quest anyway, it'll turn yellow after you give the weird scraf thing to the guy in the tai bwo wannai - i think.
I decided to go along with it and when I get to the earth mound (where you dig with the spade), it tells me that I don't know what I'm digging for. Let's hope Jagex answers my report.