Rite of Passage Task:

Create A Phylactery of Shadows

A Dragon's guide to Horizons: Empire of Istaria
By Ranqthas Clawfoot

Locations to Visit: Dralk, Western Deadlands, Eastern Deadlands, Draak
Enemy Ratings: 60, 94
Craft Requirements: 280 Scalecraft
Remarks: Can only be done after creating a Lunus Phylactery

The Light At the End of the Tunnel...

At last! This is it! You must charge your phylactery. After creating it, speak to Valkoth to get the final quest: "Create a Phylactery of Shadows".

Valkoth will assign you the final task of charging your phylactery by killing three spirits of considerable power. Two of them must be killed before the last. These two are Kaa the Shade and Lem the Cold.
Progress Check: You should have "Locate and defeat the Shade" and "Locate and defeat the Cold" as current steps in the quest "Create a Phylactery of Shadows". Additionally, your phylactery should be readily accessable on a hot-key.
These are the Kaa and Lem that you may have heard others talking about. Both should take massive damage when attacked with your newly created phylactery and should go down quickly. The enemies that inhabit the area around them, however, may pose a bit of a challenge. With careful movement, it is possible to avoid the majority of these, however an encounter with a rating 70-80 undead or a couple of rating 50 ones may be unavoidable. As always, when in doubt, bring friends.

Spiral in WD
A spiral in the Western Deadlands -- Kaa's Domain.
Kaa may be found wandering the middle of the spiral in the Western Deadlands. Depending on who is helping you, you may be directed to approach the deadlands from the south (Dryart, Desert's Edge) or the east (Heather, Floating Island).

A common tactic involves a higher level, flight-worthy dragon pulling Kaa from his spiral and into a clearing near the Tower of Nature. This is often done with the southern approach. For the more adventurous, the eastern approach can be used to get to the bottom of Kaa's spiral, where you may engage it without pulling. This is actually not as crazy as it sounds, and can be done alone by a mid-level hatchling. In either case, Kaa should go down fast - three hits or less from your phylactery, often one is sufficient.

Walls in ED
A maze of walls in the Eastern Deadlands -- Lem's Domain.
Lem inhabits the walled labryinth in the Eastern Deadlands. Technique here is less varied, and generally consists of running above the walls, finding Lem, pulling it to your position and giggling with glee as it dies with a couple of hits from the phylactery. You will find Harro to be the the most useful portal destination and the ridge to the north of it to be devoid of trouble.

A Really Long Tunnel...

Once you have defeated the two, return to Valkoth to prepare for the final battle. You will be given a Shimmering Scale formula. Create a shimmering scale for yourself and any of your friends who will be helping you (if they do not have one already). This will require some tier 2 resource and a Scalecraft skill of at least 280. This scale will protect you from Shadow Dragon's most powerful attacks. Make sure all who can wear it do so, otherwise it is almost certain, instant death.
Progress Check: You should have "Locate and destroy the Shadow Dragon" as the current step in the quest "Create a Phylactery of Shadows".
Before heading out to Draak for the last time, consider whether you are able to withstand the beating of a rating 94 dragon for about thirty seconds. The Shadow Dragon has quite a bit of health to take off, and even with the impressive damage of the phylactery, it will still take awhile. Because you will be doing the majority of the damage, his attacks will be focused on you. Make sure you are sufficiently equipped to handle such a beating - and bring friends if you are not. In this instance, if you bring a group out, make sure at least one of them can resurrect you, should you end up dying.

Light vs Dark

SD's shrine
Shadow Dragon's shrine in Draak.
When you are ready, head back out to Draak. The Shadow Dragon has a shrine of sorts on the western side of Draak at the end of the road. You'll have to run through Draak to get there. He is usually socially grouped with a pale hatchling and a couple of low-level undead. Adjust your strategy as necessary! Good luck and click that hot-keyed phylactery like there's no tomorrow!

Once you have defeated the Shadow Dragon, return to Valkoth for your final instructions. For the most part, you are done!