I just tried it now and yes, it still doesn't work. The hail quest text works, but hand ins results in him just eating all the molars and not doing anything else. I hope this is fixed sometime, darn evil Erudites getting all the loot! Thanks much.

It's now working... mostly. You can turn them in, and you get XP, cash, and faction adjustments. However, you don't seem to get any ringmail. Maybe I was just very unlucky, but I turned in 40 molars, and that would usually result in several pieces on Live.

Oh I see. Did not include ringmail as a possible reward. Skimming that thread it seems it could be ringmail or a 'minor weapon' at 25% chance. Anyone know which weapons should be obtainable in this way?

I just now tried this on Live. Turned in 20 molars, got 4 pieces of ringmail, no weapons. I don't recall ever getting a weapon when I did this at least a hundred times back in the day.

Fixed, pending update

-Tiam has a chance of awarding a random ringmail piece

They must have removed that at some point, because I distinctly remember looting molars on a high level when I was factioning for Paineel.