As to what I did; I bred with an air dragon 3 times. The first time I sped up the breeding/egg, the second time it gave me a genie (which according to the list, I'll need later) and the third time was still waiting in my den. None of those breedings cleared the quest for the dragon tales event. I didn't mention or go to the spell shop so I don't see why that's relevant.
It finally cleared the day after I posted that message (yesterday) and I've since moved on.