Stewark (town) is the capitol of the Stewark (the nation), and is the first major city that the protagonist arrives at.
SPOILER ALERT! The royal court is in havok after the Baron's brother, Hertan, has betrayed him. Hartan leads, with the moral support of the townspeople, a rebel force to usurp the throne.
Liuven, the Baron's sister is also missing and wanted for treason, for reasons yet unknown.