When changed Shinwa to make it so that the quest reset at midnight, something broke. He acknowledged it here:

I waited 10 minutes and tried again, no luck. So I waited over an hour, still no luck.

WTF do I need to do to be able to do this quest?

What stage of the quest are you on / who was your questgiver? :)

Stage 1 and Pete

Huh, I just checked and it thinks you aren't on a quest. I just removed your current shinwa quest and tested it myself, had the library and Alexander gave me a piece. Can you try again now?

It worked!!

Thankyou!! :)

Glad this worked out! Locking as resolved!