The vengeful spirits are increasing because of the grave robbers' activites, and Karuda needs help preventing something evil from happening. 1. Go to the Crypts of Disgrace and see Karuda
2. Karuda will have you hunt various types of Ghosts in the area to receive the quest items (Generals, Chiefs, Loyal Vassals, Soldiers, and one or two other types will drop them). You will need about 180 of them, and the drop rate on them is fairly high so it should not take too long to gather them. These are mostly concentrated around the actual crypts themselves so climb up a few and just run around them grinding them, no need to go too far and wide.
3. Return to Karuda when you have all 180 quest items and he will let you choose from a selection of Materials as your reward.
The confirmed rewards are (you can chose 1): 18 Braided Hemp 7 Cokes 4 Steel 6 Coarse Bone Powder 10 Leather 2 Steel Molds