The quests work, but only if you can find the right spots to collect from, and they aren't (as you found) where the autorun takes you to. It's like that on the Imp side as well.
Haven't yet been able to find them.
Edit: The herbs are right were they have always been - for reason I just couldn't see them until I abandoned the quest and retook it.
Try abandoning the quest and then take it again and do it right away.
I think it gets bugged if u take the quest and not finish it before logging out.
Might as well try that.
Edit: Did as you said and it worked... or otherwise the whole quest problem has been fixed since even step 4 works just fine now.