It sounds like you've figured out the glitch, could you possibly please explain how to do that? I'm not sure where to find that file, but I can open up a text editor once I figure out where the heck it is.
I'm having the same exact problem. I get into the cave and the quest updates and all the ogre will say is that we've got an arrangement. I haven't started any of the WM1 or 2 content. But I did do the level in Od Nua where I made peace with the ogre. Please patch this.