As far as I know, you have to get the information for the "right" password, before the conversation works. Have you tried to get hints in the nearby tavern? And is your questbook updated and tells you that you should go and see Dramosch?

If you return to Dramosch, you will get drunk, that's part of the plot (after all, he is a dwarf with something to celebate ).

Did you get the reward for finishing the quest (50 gold coins, if memory serves)? If so, you have a bug in the quest log.