Help me out: I'm already in the (huge) woods, accompanied by a dwarf called Dwyvyrn. Why am I searching for the oddly-named Carnaldave, and where do need to go? The dwarves in the Guid Hall remained silent on the matter.
Kudos to hans for his C&C reeference.
It's been a long time, but I think that Carnaldave is/was the leader of the Grey Company, a NWN Guild whose members are/were Elves. I recall wandering the Neverwinter Wood, searching every nook and cranny of the forest until I stumbled on the Grey Company's hideout therein.
So, just keep searching... as long as you're in the Woods, you're on the right track. Don't ask why you need to find Carnaldave, just accept that finding him will move the plot forward.