Thanks for responding...

I did speak with Raminus and I'm not able to tell him about the Necromancers because it is not one of my dialog options (since my journal did not update).

I also tried to bypass Raminus & speak directly with Delmar, but Delmar does not even acknowledge that I have a staff to activate.

As far as I know, this has been the only time my journal entry has not updated.

I've never exchanged a game before. This game was purchased before Christmas 2007. Do you think the place of purchase would still be willing to make an exchange?

Would contacting Bethesda help?