Heres what I done.
Entered markarth early saved the Girl got the note, carried on exploring the world.
After doing some other quests including ones to get a house in Markarth decided to check this one out.
Met the guy in the temple of Talos.
Spoke to the Girl in the pub, stole her diary anyway.
Got warned by guards as I left.
Went to the warrens got the key and stole the note.
Leave the warrens Dryston picks a fight with me, I win.
He begins with "I work for Ne..." and the game becomes completely frozen. Tried reloading the auto save of leaving a few times but always freezes in the same spot.
Has anyone else had it? They all seem to be guard glitch complaints for this quest. Is it happening when you take a certain set of actions? Maybe stealing the diary even though I have the info needed, or maybe because I took so long in getting round to this quest.
Think I'll restart (again) avoid cities like the plague til I want to deal with them, now I've found out any hirelings will have a incredibly low amount of health thanks to my exploring.