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When I go to the hospital and talk to Lena, she merely complains about being stabbed and healing up to fight this menace. She won't take the Bandit hats (I have more than 10) nor will she give me the opportunity to go on to the next part of the quest. I'm also way over level 30 (56).

One possible cause of the glitch is the fact that I found and talked to Bryant weeks before I knew about the Bandit quest and ever spoke to Lena.

Is there any kind of possible work around I can do in the meantime?

You need to complete the quest series in Tulimshar before you can do the bandit quest.
When you got the desert shirt for killing the Giant Cave Maggot, you're ready for Lena's quest:

http://wiki.themanaworld.org/index.php/Tulimshar_Quests

It seems this requirement isn't listed in the Wiki article about Lena's quest, maybe this should be changed.

Also it might be a good idea if Lena could mention something that hints to the Tulimshar quests.
Thanks for your feedback.

Thanks for clearing that up! Much appreciated...

This has been on the wiki page since it was created.
|Prerequisites = [[Tulimshar Quests]]

Oh, you're right!
I just overlooked, sorry.

...but who wants to read through some pre-requisite cheat sheet when part of the fun is the challenge of being able to figure it out IN GAME? The NPCs still need to make some allusion to the pre-requisites.