Originally Posted by Maylander
Hmm, he's supposed to be near the throne in the big castle with all the Paladins. I've never experienced him being anywhere else. Did you ever give a teleport rune to Lee? I know Lee will attack the King if they ever meet, so I suppose they could have charged off somewhere while fighting.
Other than that, the only real option is to summon him or the item you're looking for with a console command. I think he holds the Scepter of Varant or some such thing which is needed for the main quest. Based on this page (http://faqs.ign.com/articles/768/768307p1.html), I assume the correct command is: