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You don't have to start any quests to get the helmet (I just did it for the XP), it can still be found in the same spot regardless.
If you didn't notice, the place is the "Helm &Cloak" tavern.
No, I have no idea how my rogue avoided a fiery death, glad I moved back though.
Who's Balduran?
Excerpt from Forgotten Realms Wiki:
Balduran is a legendary seafaring explorer. He was the first native of Faerûn to set foot on the lands known as Anchorome and made the trek up to Sossal. He returned full of tales and vast wealth. He put forth a large sum of money to protect his sparsely-settled home harbor town. Then he set sail of Anchorome again and has never been seen again. His money was well spent on the wall though, and that small town soon grew into the city of Baldur's Gate.
The Flaming Fist took an expedition to Anchorome to discover the fate of Balduran. They encountered vast tribes of savage elves, that decimated the expedition.
Balduran also lends his name to the Bay of Balduran on Anchorome.