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I completed the quest too as a level 35, but once I finished I was level 36. The hardest part was the ship sinking since I mistakly sold all my war ships except my War Sloop. I chose the Spinecrest Sword. O_O.
Oh and you can defeat rage ghosts. You need alot of help though. Yesterday on Andaba, we were at ravens cove, outside the jail. Somebody used the Bitter End and froze the lvl 48 rage ghost. I ran up along with some others and started attacking it, and a few blunderbussing people helped. It droped a loot bag (dissapointing really) with a Red Blue Party Hat. It looks like only then people who finished the quest could claim it though since none of blunderbussing people were able to open the bag.
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