Okay, so in this quest you are required to give weapons to this elf so that he may smuggle them into this party for you.
There's one problem though: I couldn't figure out how to give the elf the items.

Now when I get to the party I get stomped by all the guards and I can't progress through the quest.
This quest is kinda important to the main storyline, so any suggestions would be great.

Also, in my foolishness I didn't save for a considerable amount of time and my autosaves are from after I initiated the quest.

What to do?

Try using magic or shouts to kill a guard, then take his/her armor and weapons. If you're having health problems try to get some food or potions.

This. Even if you're not skilled in magic, it would be your best bet as a temporary solution to take out the Thalmor gaurds. Or hopefully you've found a few Shouts to use against them. Then loot their bodies and borrow their armor for the remainder of the quest.

Actually, that is an interesting question.

I have a few questions of my own, if you don't mind:
Where am I to hide my armour/weapons? Is it enough to unequip them?
What do I wear instead? Light armour? A knife?

I suppose, if I am to stealth around, heavy armour is a no go, isn't it? Shame actually, because I am skilled in twohanded weapons and heavy armour... hmmm.

I really wanna have more info before I tackle this quest.

TIA for anything you could point out to me (spoilers allowed, hehehe)
cya

There are a couple things about this... one, this is a spoiler, so you might want to tell people that.

I found what's her face, Daphne and the elf down by the stables. I think R was the key to give him the stuff... then I gave her the stuff I wasn't supposed to take in. This was stupid.

After the quest, she only had some of the stuff I gave her. The rest was on the ground where we met by the farm outside the city. Silly.

In doing the quest, I had a tough time with some of the guards, but as a mage, I had some decent spells, and there were tons of potions and items to loot from the palace. If you are having trouble, take it slow. Try to single out as many people as you can. I tried sneaking and it didn't work for me. Even had boots and a necklace of sneaking, but I svck at being a thief.

I died once to the guards there. I varied my attacks and I survived. Also potion come in really handy in battles too

:D

I had a bit trouble doing this quest. I thought my gear would be in the chest, but I couldn't retrieve it.
But eventually I made it out of there. It was actually kinda fun to do this quest, because I really had to think on how to do this. It wasn't easy...
So, after several tries I thought it would be nice to record it, and to make this vid.
Hopefully it might help others a bit.

This would be the best way for assassins/rogues/thieves(sneak mode)
http://www.youtube.com/watch?v=h0wN5H4z9P8&hd=1