This quest was unsolved in our timeline from the research I see. His text was changed to the Phinny garbage sometime in 2002 past our timeline. Here is the clear reference that this quest was borked around 2002:
4th Comment down, dated Jun 8th 2002 : "new info: You say, What contests?
Bjoskhua Blackfist says, Ages ago there was a race of wishmen named the Kedge. Prexus spread them throughout the waters waters of the world and they were prosperous. Rumors abound that even near the waters of velious they had great cities. All at once they seemed to be whiped out of the fave of Norath...."
And then this guy on Feb 9th 2003:
Alla Comment #2
"At Amiable and better faction, Bjoskhua Blackfist will indeed accept the Giant Sized Monocle (but will still return other items) - confirming that this is what is needed. As to the book - I still have no idea.
EDIT: Additionally, as of right now, his text is broken. You get the response listed above for "what contest of the fist" regardless of what you say to him.
Edited, Sun Feb 9 20:44:37 2003"
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Additionally the reward item, "Flayed Coldain-skin Leggings" are dropped by some giant, but not from Bjosh:
Comment
"They were looted from giants just a little ways off the main through path, past the pond where the giants are fishing."