Allright, first off, if you can't answer this without a snide remark, please don't read it... the question is a remedial one.

For anybody left reading, where is Dernath? I am far enough in the game that I am killing sea giants and going on quests for the elf, and I have never found Dernath. Someone please let me in on the secret I missed. Thanks!

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I had the same problem.
You need to take the path north of Frantrima, and then when you reach the bridge turn right before it and stay on the south side of the river. Eventually you'll run into some soldiers who will give you directions. At least I think that's the way, it's been a while though.

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Thanks, Froglogic!

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stores this advice in his journal.