Background
Like many small feudal subjects, the village of Rielenberg answers directly to its lord. Also like many small feudal subjects, the results of this arrangement depend heavily on how reasonable this particular lord is. Rielenberg, as it so happens, is under the thumb of Baroness Gloria von Habischem, a woman who believes it is the right of all nobility to do as they will, unfettered by the voices of the peasantry. After all, they should be grateful the nobles even allow them to stay on their land - who are they to complain?
Recently, Baroness Gloria's forces repelled a bandit raid elsewhere in her territory, but the cost of maintaining and raising a sufficient army put strain on her coffers. In response, she subjected the people of Rielenberg to crippling taxes in order to make up the cost. For the people of Rielenberg, who have long felt that the nobles were uncaring and indifferent to their concerns, this was the last straw. The people are planning a revolt in secret, uniting around the leadership of the blacksmith Lorenz Bahr, a charismatic visionary who feels the time is right for the peasants to fight for their freedom. Though they are sure they don't stand a chance in a head-on assault of the Baroness's castle (not knowing how meager the garrison is), they have begun stockpiling weapons and plotting movements to disrupt her patrols in what they hope will be the first step in a long guerilla war.
However, the forces of the Baroness have picked up rumors of these plans. And when the PCs arrive on the scene, it'll soon be realized that their status as outsiders could be valuable to either side...
The Encounter
While traveling, the PCs should come upon either the village of Rielenberg or Baroness Gloria's castle, which is located about a mile to the northeast. Decide which location you would prefer to use. The players may be swayed by whichever side they hear from first, so keep that in mind.
If they go through the village first, they will find the people are struggling to sustain themselves under the burden of taxation - their fields are poor, they don't have much to sell at the market, and they can barely scrounge together enough food to offer a meal at the local tavern. If the PCs enquire about this, the people will explain that they are suffering under the Baroness's taxes. They will direct them to Lorenz, who they explain is forging weapons on the side and hiding them at caches around the village (in barrels, under hay bales, and the like). Lorenz sees an opportunity in the party - as experienced fighters, they might stand more of a chance in taking on the Baroness's forces than any of them could alone. If they seem trustworthy, he will let the party know of the location of his weapon caches and inform them that he is planning on ambushing a patrol of the Baroness's guards under the cover of night in three days' time, where he plans to hold the guards for ransom. He invites them to participate if they wish.
If the party visits the castle first, they will similarly discover that it is facing hard times. The castle's halls are empty and the guards are few in number, making it clear that it was built to hold a larger garrison than it currently does, and everything is covered in dust, as there are not enough servants to attend to its upkeep. If the party seeks an audience with the Baroness, it will be granted; alternatively, if there are any nobles in the party, one of the Baroness's knights will invite them to the castle, hoping that they might be sympathetic to her cause. There, the Baroness will explain her situation, noting that she suspects that the peasants are planning an uprising under her nose - they have, after all, been speaking in whispers whenever the guards are around, and moving around barrels and hay bales for seemingly no reason. The castle surely will not be able to defend itself against a revolt unless it is crushed soon - and she hopes the PCs might be able to turn the tide. She requests that the PCs gather information on any potential revolts, reporting back to her on their movements or leaders. She emphasizes that under no circumstances can the peasants learn that the castle is undermanned, or they would surely be emboldened to attack.
For this encounter to work properly, the PCs should have the opportunity to visit both parties and hear both sides of the story. Both factions feel the party would be able to help them - as outsiders, they would hold no preconceived loyalties. Naturally, this makes for the perfect opportunity for the PCs to act as double agents - they have information on each side that the other side would want. It's only a matter of choosing which side to aid.
Further Developments
If you want, you could easily extend this encounter with the PCs performing missions for whichever side they choose. The peasants, for instance, might request the party's aid with transporting weapons to potential allies, while the nobles might need them to set a trap for the peasants during one of their mobilizations. To make things really interesting, both sides can give the PCs missions as long as they believe they're on their side, and the PCs can aid or sabotage them accordingly. You can keep this going as long as you, and your players, find it entertaining.
The end goal for the peasants will be storming the Baroness's castle and deposing her from the throne, while the end goal for the nobles will be stamping out the leaders of the rebellion. Ultimately, the conflict should culminate in one of these things, and the PCs may well be involved on the front lines.
If the PCs sided with the peasants, the people of Rielenberg will have little to offer them, but they will be hailed as heroes every time they return to town, and the people will be happy to provide them aid. Any of the townsfolk will give them a bed for free if they need to stay the night, and they will lend their services if called upon to the best of their ability. Lorenz will also offer to forge each of the PCs an enchanted weapon of their choosing - it has +1 to all to-hit and damage rolls, or +2 if the attacks are made against a noble or similar authority figure.
If the PCs sided with the nobles, Baroness Gloria will be thankful for their aid and grant them all knighthood, with all the privileges that entails. They will be able to stay at the castle as welcome guests whenever they wish, and she will provide them land on which to establish a manor of their own. This could be a good introduction to domain-level play, if one so desires.
Regardless of the outcome, the status quo will surely be shaken up, and this can be used to fuel further adventures. If the Baroness is deposed, it will leave a power vacuum that must be filled at some point - and her feudal masters might step in, not wanting to leave such a powerful peasant levy unchecked. If the rebellion is crushed, it might well inspire another such group to take up arms some time down the line, seeing the attacks on the people of Rielenberg as a gross abuse of power they are motivated to fight against. And the bandits that plagued the Baroness's forces might well return, too...
If one is to make this feel like a real dilemma, I think the Baroness needs a sympathetic presentation, and she needs to spin the peasants as genuinely undeserving. My experience of players is that most of them will automatically side with the peasants revolting against authority, even without a cause.
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