The Drunken Lizard Pub

Earlier I posted a question about the man in the dungeon in Vela whom I couldn't see but was told "seems to be still alive". I have now visited Blackwater and into the Repository and discovered that the person writing the notes was me and that I had to find my brother "probably being held by the goblins in Vela". As I have totally cleared out Vela and my 'brother' is nowhere to be seen (i.e the man in the dungeon who's 'not there'), is this 'game over'? Any help please!!!!!

No, you can just soldier on regardless, although he was going to give you some clues as to where to go next. Way Way South is the eventual answer - just go kill everything that seems to want to kill you and it'll all come out right in the end. You probably need to go visit the mage's tower (middle of the North) and talk to the chief mage .. at some point.

There is also the fix (search for it) which involves you deleting the saved Vela maps (which resets the area) from your savegame and then completing it again.

How do I go about the 'fix'? None of the maps in saved data say 'Vela'

Your search-the-forum-Fu is letting you down. Try this thread:
http://www.basiliskgames.com/forums/viewtopic.php?t=575

Cheers mate, worked a treat!