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( by the way the mission is "ILL met by moonlight" in the cemitary in falkreath and ask MATHIES "who died?" and then speaking to Sinding, a prisoner in the Falkreath Barracks. Alternatively, you may speak directly to Sinding to start the quest. He will tell you of a rare animal that needs to be killed to appease to Hircine, the Prince of the Hunt. Sinding gives you the Cursed Ring of Hircine that will make you randomly transform into a werewolf. After that, he escapes. After you kill the animal, its spirit will appear to you, and through it, Hircine will speak. He'll command you to go to the place where Sinding has fled and instruct you to kill him, to gain favor with Hircine.

Once you've arrived at Bloated Man's Grotto, you'll meet some hunters, horribly outmatched by the werewolf Sinding. You can choose to either try to kill Sinding, or to ally with him and kill all the hunters. The reward you receive varies depending on this choice:

If you kill Sinding and take his skin, Hircine appears to reward you with the Savior's Hide, a leather-based light armor which gives magic and poison resist.

If you kill the hunters, Hircine will appear once you leave the grotto and commend you for turning the hunt "inside out" - giving you his blessing and transforming the ring into the Ring of Hircine. This ring gives the user unlimited werewolf transformations. (Note: You must already have the power to transform into a werewolf in order for this ring to take effect).
Both choices remove the Cursed Ring of Hircine from your inventory.