So after reading alot of pages and alot of searches, I figure it has to do with the rating I have. I grabbed an npc wand and clicked on tyrltran and tried to find out what faction he was, then decided to look at my stats. For Aggressive I'm Unfriendly 0/500 for Villian, I'm friendly 1000/-
for draconis guard I'm 820/1500 (neutral).
I'm assuming this is where it's bugging out. But I've only gotten two quests for the guards. 1 for killing some creepers then another for bringing 3 heads each of skel/enderman/zombie. both I did and returned. I guess I will search out other guards or something to see if there's more quests to increase my rating with them.
I'm just saying that it's really not obvious if I'm dealing with a design mechanic/limitation or a bug. the lines are very blurred. Maybe I'm being a little impatient I guess but I played the first tolkiencraft and had bugs in ME where it was too laggy to do anything and I had to quit. I will try to find some patience. even if I have to kill a doctor to steal his.