In Nashkell(1) do not enter the inn.
First look for the shop and the temple, and buy some good healing potions.Then at the middle of the village you will meet Minisc.(subquest, he wants to free a mage in the Gnoll Stronghold(3s), west from Neshkell.Good quest for experience, and quite easy.)
When you're ready go to the Inn and fight the new bounty hunter.
Now head for the mines Southeast.(2)
At Nashkell mines you can find Prism(west from mines) ho will ask you to save him from Grymvold.(Be aware that Grymvold it's really tough to kill, but you will made 2 quest in one,cause after Grynvold's death ;Prism will die and you'll find on his body the 2 rewarded gems from Nashkell village.)
Now talk to Emerson the mines boss, and enter the mines.
Clear the levels(easy )and in the last level :
look for the door(1),(2)is the exit from the mines.
Enter and fight Mulahey, have no mercy.
After the battle look for the documents on his body ,and chapter 2 will end.