O'Fulle's Special Bait
2) Fettered Souls can be found along the right side of Death Pass all the way up to the river and as far east as Hardin's Academy. The drop rate is 100% and you need 100. The only thing aggro out there you need to worry about is the Grandis and Wyrms, but the Wyrms stay at the lower end of the road.
3) When you have 100 go back to O'Fulle and receive 4 Icy Fishing Lure(s). Pay no mind to what he said about bringing more, you can only do 100 at a time.