Skyrim Sidelines- Ill Met by Moonlight: The Things You’ve Hircine and Done

Either way, you will encounter Sindig briefly in the next clearing.  If allied with you, he begins to follow you around and if not, he soon moves on to the next area.  Follow the path into a small ruins, where you can find a random treasure chest and collect a fair bit of Hanging Moss for your alchemical pursuits.  Beyond this is a clearing where you will find three hunters.  Two of these are archers and one wields only a one-handed weapon, so they will quickly fall, whether or not you're allied with Sindig, unless you go to great lengths to distract him and take the damage yourself.  If fighting him, deal out a little additional damage and he'll move to the next clearing.

This time you'll find only two hunters, though both are melee-oriented.  Again, Sindig or the two of you will have little issue wiping them out.  Proceed to the final clearing and you'll run across a trio of hunters, with one wielding a large two-handed axe and power attacking like Stamina was free.  If you've allied with Sindig and intend to betray and kill him, this will be the best place and time to do so, particularly as it takes several hits for him to catch on and start trying to kill you too.  If you are against Sindig, then any surviving hunters from the two prior fights will have followed you and you can ideally lay out a withering barrage of arrows into the lycanthrope.

If you've chosen to fight Sindig, either initially or by backstab, take care- his attacks are strong and his health is a magnitude beyond that.  Anyone not wearing heavy armor will likely find it to their advantage to climb the walls until they are in a spot the werewolf can't reach, and pelt him with arrows from an unassailable location.

One way or another, you should come out victorious (if wounded) and then be able to claim your reward.

If you allied with Sindig and stuck to it, he will thank you for your help.  Once you leave the grotto, Hircine will appear to you in the form of a phantasmal elf- he is actually satisfied by the hunt itself regardless of your response to his various questions.  He will remove the curse from the ring, permitting you to keep it.  Uncursed, the Ring of Hircine is a great boon to a lycanthrope: not only does it make transformation non-mandatory, it allows an additional shift into beast form each day.  A pity you can't give it to Sindig, who has sworn to stay out of civilization for the rest of his life anyways.

If you slayed Sindig, regardless of whether you were straightforwards or sneaky about it, then you will be able to skin him much as you would loot the corpse of a normal enemy.  Taking the lycanthrope's hide prompts Hircine to appear in the form of a ghostly elf and praise your skill at the hunt.  Pleased by the exhibition, the Lord of the Hunt will take his ring from you and convert the lycanthrope's hide into a special armor, the Savior's Hide.  This unique hide armor has its own armor model, and grants both a decent resistance to magic and a much more considerable resistance to poison.  As light armor, it's low-weight and easy to wear too.