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Confirmed you may hand your Collapsed Toolkit to Caerlenya (sp?) in bazaar and receive in return the new Collapsed Gnomish Recharging Device. No dialogue was necessary and she does not hint towards being able to do this if you hail her.
When she gives it to you tho, she says something like "Enjoy you new toy!"
~Clio
When she gives it to you tho, she says something like "Enjoy you new toy!"
~Clio