I am in ravenscar and i am on the quest with the "Oni barrier demon protector" thing and when i'm supposed to battle the oni i leave for my dad to join the battle with me and i go back in and it asks me for its blood again?? :?
Although I don't have any experience with Grizzleheim at all (sense I was too anxious to finish Krokotopia) but perhaps it was a dungeon? Whenever you leave a dungeoun, ALL your progress is lost.
I am not real familiar with this quest since my wizard is past that stage. I can only guess that it is a dungeon. If you leave a dungeon for too long or log out, you have to start the dungeon over from the beginning.
By the way, no one can help you with the Oni Barrier Demon. I tried to have my life and balance wizard go in together, and at no part during that quest line could they enter the dungeon together. I tried porting one in to the other as well, and all you get is a message that says they are busy right now. I ended up soloing it on both of them.