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Ok guys so I've tried reading every frigging scrap of paper I own. The body on the bottom of the sea that glows red in witcher vision will not allow me to [e] it. The chest near by is locked. Am I missing something or is this a bug?
That's not the right body, the one under the ocean is for a different quest. Try looking on the rocks above the water, just near by.
If you're talking about the dead guy in green by the (treasure) protected by drownders(sp) I've checked that guy as well.
That should be the guy, he should have a letter and a key on him. Have you read the letter?
I've read every single piece of paper 3 different times now. What is the name of that letter? Maybe I'm missing a clue in it. I figure if I had the key the box should unlock. So as long as I have the letter I should have the key correct?

Thanks for your help so far gothik13
Hmm. You may have hit a bug, I don't remember the letter (or journal can't remember which) having a specific name but after reading it the quest updated (or appeared in my case) in my journal along with a yellow search circle in the area. The quest merely said to search for the treasure in the area. I swam under the water in the area and found the chest and unlocked it.

I don't know what else to suggest, you've found the right body and he should have had the key and letter/journal on him. You should be able to unlock the chest. Have you got a recent save in the area to try again and see if reloading will cause the quest to work properly - that would be the other thing I would try.
Ya i even opened the chest and took everything but it wont regester as completed