I did the Kiel Hyre quest on iRO. This is what I roughly Remember. I did the kiel quest on iRO ages ago >_o
Kiel Sr. was born into poverty, but he was a genius. He had a love, but she was born into a higher structure class than him, and she was forced to wed someone else. So, Kiel joined the Rekenber Group, responsible for the bio labs, and with his new seat of power, was able to finally show his worth. Alas, his love died, and he mourned. Later on, using Sage scrolls, he was able to make Generation 1 robots, which he mainly keeps one around him that looks like his lost love. In desperation, he created generation 2 robots, capable of thought and emotion, and finally, he created his "son" Kiel Hyre, a generation 3 robot, who was able to upgrade himself to generation 4 and become Kiel D-01.
At the start of the quest, you help a clumsy school girl named Elly bake some cookies in the Kiel Academy. However, once you go to deliver them to her "grandfather" Kiel Sr., you realise not all is well. Kiel is gone and apparently went to confront Kiel Hyre about his irrational actions as of late. Elly pleads with you to investigate the cottage, so you go there and head downstairs into Kiel's mansion, where you learn of a few incidents going on around Kiel's Academy. You head back to the academies dormitory, only to find Elly has been cursed and cannot respond. You then take the key she holds and head down into the first floor of the academy, where you find Allyssia, and after a bit of talking, she tells you where Kiel Sr's mansion is in Lighthazlen. You go there and confront him about his past, where he reveals that Elly is a robot too, and that his "son" Kiel, went mad and is now churning out killer robots in the factory. You then have to go through a back way in the mansion that leads to a confrontation with Kiel Hyre, in his human form. He isn't too tough to kill, but then he retreats into the Factory, in which Kiel Sr then remarks that he must have already found a way to upgrade himself, and he asks you to stop Kiel D-01.
Best I can remember.