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Now, I know this is a broken quest, one that the devs didn't get around to completing before BG2's release. I found the following info in the FR Wiki: "The Twisted Rune was a highly secret cabal of liches and other powerful undead spellcasters. The inner circle was highly secretive, and employed agents to do their bidding, most of whom were unaware that they worked for the Rune..." and goes on for a time: http://forgottenrealms.wikia.com/wiki/Twisted_Rune
Note that Shangalar is named.
I also know that in addition to the Twisted Rune compound run by Shangalar in the Bridge District, that the Rejiek Hidesman murders in the Bridge D and that was continued to an IMHO lame conclusion in Trademeet were connected to the Twisted Rune quest.. My questions are these: was it connected to the Guarded Compound in the Temple D? Or anywhere else?