Alamar on 7/6/2002 at 15:12

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It's really easy. Ignore the instructions you're given (about heading to some swamp or other) and take the Silt Strider back to Seyda Neen (the starting town). On a tree a bit east of the tradehouse, just north of the patch of 'swamp' in town there's Bungler's Bane and Hyphia (or whatever :p ). If you walk around the tree there's some of the glowing mushrooms you need, and following the road north and east out of town you'll find the fourth type of mushroom near one of the trees.

(note: I'm pretty sure these directions are correct, but there might be slight discrepancies. All the mushrooms are definitely around Seyda Neen though.)

You might also want to consider walking back to Balmora, since you'll be needing more ingredients for that fuzzy ball of fur in the Mages' Guild, and you can easily find them by the roadside...

[edit] touched up the grammar a bit