WARNING! This page contains plot spoilers.
You are from the small farm town of Wheaton.
A series of subplots will lead you towards stopping a gang of Bandits who intercept spice trade from the Orient.
You are from the large city of Forthgard.
Unified Plot (Second Half of Game)
The Elves in Mirthwood are having some sort of dispute with the Dwarves of Dunmala, and you have to solve the dispute. The Brillans are governed by Treaty, and Bridge is where the Treaties are filed and legislated. After solving the dispute, you are asked to deliver the updated Treaty to Bridge.
People in Bridge are worried about the threat of a Dragon on Mt. Udou. They've heard of a secret way to enter Mt. Udou.
The Teeburi in the Teeburi Village show an unusual interest in shiny gold things.
Rent a boat in Grenwill to take you to Mu.
The Dwarven Blacksmith in Ardbaile can repair the armor for you.
Equip the armor, and go back to the Teeburi Village. They will lend you use of their Canoe along with a Guide, but only a single party member can ride in the Canoe at a time (i.e., you get town-docked from here forward.)
You can use the Canoe to go to Clarier Glen.
But, you can also take the Canoe up through the waterfall into the Waterfall Cave. This is a multi-level ascending dungeon you will have to conquer solo. At the top you will find a nest (Phoenix, dragon, etc?) and if you can tame the beast, they will fly you to the Temple on Lion's Peak.
Here you acquire a Holy Artifact (yet undecided.) Fly back to Udou, work your way back through the dungeon to get to the Canoe and return to your party.
Now you can travel to Sentia and work through the spiral mountain path, visit Haflor Monastery and enter the Temple of Creation dungeon where you will need to use the Holy Artifact to conquer the evil and...
If you are from Prydain: Restore Peace to the Kingdom.
If you are from Caledonia: Claim Forthica for Caledonia? That seems ambitious. Maybe you are looking for an object that needs to be returned to Tansmere.