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It's possible to complete the quest without talking to Slumberjack, simply find the chest with the gold. It's located on the beach west of Mudbarrow, near the water's edge.
Chest appears on my map but is not tangible. Tried digging but its not found
"Mudbarrow has rewarded us for our effort" - I finished the quest but didn't get a reward besides the chest and the XP
If you killed Slumberjack already, go to the shore west of Mudbarrow, cast Clear-minded (need 18 wits) and dig up the chest. When you talk to Mudbarrow again remember to talk with the character you initiated the quest with.
If you killed Slumberjack AND looted the chest before starting the quest; return to the chest, put your own gold in, step away and loot it again. The quest will then recognize that you got the gold from the chest so you can complete it.
Tried your method, but didn't work. But then I checked lumberjacks body and saw that I forgot to loot the saw-dust covered key. Then I went to speak with the ghost again and THEN it worked.
I told him to go to the hall of echoes, got 10k xp
If you get stuck just drain him and it complete itself :)
yet another easily broken quest nice job -.-
and putting gold in the chest didn't work o-o