Quest Talk:Chapter 1: The Hill of Cerin Amroth
Sounds like this quest requires that you have Friend standing or higher with the Galadhrim. Can anyone confirm this?
I took a peek at this one to double-check, and there is in fact a Reputation requirement on Volume II Book 7. You need to be friendlier with the Elves of Lorien to attain Volume II Book 7; completing Book 6 gives you that level of Reputation automatically, but otherwise you'll need to get it by doing other quests for the Elves. -MoL (link)