Fable 3: Traitor's Keep Walkthrough Part 5 - Undeath Sentence
You can either reach this quest by selecting it through the Sanctuary Map or by choosing it and follow the glowing trail to the Guard,Hadley who will explain the situation. Apparently the dead do not like overcrowding just as much as the living. This means that you need to take the Cemetery Key, visit it and sort things out for the Undead. This is a very short and simple quest to do so don't expect it to take too long to complete.
Head down the path opposite the guard, toward the gate on the fair end of it. Use the key to open up the gates and head up the hill. Likely, you will see company waiting for you at the top of it. The first group is very small but easy to deal with. Lay waste to the small group of Hollow Men.
If you want, you can take a moment and look to the right of the stairs going up to the left. There is a dig spot with some treasure and down the hill to the right you can find a treasure chest.
Follow the path up the hill and crest it. Keep to the path and go up the stairs on the left. Keep going uphill and you will run into the next batch of Hollow Men. This is a much bigger group so expect it to take quite some time to deal with.
Head to the far side and go up the hill to the left. Follow the narrow path, down the stairs on your left, this leads to a small landing where you will encounter the final group of Hollow Men. It is a larger group so expect more resistance. Send them back to the grave to finish off this quest.
Before you head back, there is a treasure chest on the left-hand side. Open it as it has the Trousers for the Prisoner Outfit. Now, follow the path back to the entrance of the cematery and keep going straight on to find Hadley and get your reward of Guild Seals.