This quest is meant to be offered by Frankie, the owner of The Hole, but he won't mention it to me. Is it perhaps karma-based? I don't actually want to smash it, I want to do the peaceful solution. If it matters, I'm playing with the latest fan patch and the Restoration patch.

almabrds gives a step-by-step walkthrough in thread posted by triock, but don't install Killap's Fallout 2 patch as suggested at the end. The patch is already included in the Restoration Project and installing it afterwards will break the additional content of the mod.

Thanks guys. Now I'm a bit worried about if the patches are interfering with each other. I intalled the GOG version of course, then the two patches off killap's site plus the resolution patch. Everything seems to be working as detailed here so far, though. I'll try those steps out when I get back to the Den.

All you need is Killap's Restoration Project Mod, the rest is already included. As long as you've installed it after Killap's patch you should be fine. If you installed the patch after the Restoration Project Mod you probably won't get the extra content.