It all seems kinda random, I've done this quest on several different characters the correct Halfling camp is the one right next to the River it's a shrine that looks like a beetle or something on it, and like 6 halflings spawn around it
On one char I got the necklaces like the above post mentioned in just a couple spawns
The other char camped the camp for over 4hrs to get the silly things, tho I haven't heard many people saying they had as bad of luck as I did that day.
Edit: All my experience with this quest comes from live, tho the first time I did it was pre-kunark so it should be in on here.
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