It lies on an island called Eldrion. Harakauna almost never get any visitors, though that does not mean visitors are not welcomed. They, just like every other city, have to abide to the rule that makes selling weapons and armory forbidden. It has it's annual food contest festival.
Meeting Yvette: She is a shapeshifter, that will help you on your quest.
Leaving Ulf: Ulf stays behind to study under the local (and famous) alchemist.