How do I solve (George's Murder)?

The thing with Divine Divinity is that the quests don't always get solved in any special order, certainly not anything close to when they're given.
You won't solve Georges murder until you go to Verdistis.

[Spoilers below]

To solve Georges murder, go to Verdistis Watch, and speak to the captain. he will tell you about some strange murders, and hint of a suspect. Go to the Wine Barrel store East and slightly South of the Watch, and speak to the owner. Tell him that you want to investigate his house, and he'll let you. Go through to the backroom and down into the basement. At the far right of the basement there is a pile of crates. Move these aside and you'll find a secret door, with the murderer behind. After you've dealt with him, you will just have to tell people what you've done, and the quest is complete.