So we've all been victim of thieves at some time. Well I was too green to realize that trying to steal back from the thief would get me shunned by Darius. Now of course he won't talk to me and is sending me up to Theren to repent somewhere. Does anybody know where it is and how I do it?

Allorica,
who learned that payback doesn't work too good for paladins

Go to the chapel in Theren Keep.

Repent.

You repented but hows your soul state?

(never done the quest before so im just taking a guess)