Why is rest not working in WolfQuest?

Try restarting the application and retrying or uninstalling and reinstalling WolfQuest first. If this solves nothing, check your key bindings- you can do this in the configuration window that appears when you open the application, before selecting the screen resolution and graphics settings. Simply click the "input" tab and locate the bound key for the desired action -- R for rest, or Z for sleep -- and change the configuration, then launch the game and test to see if the newly defined key bindings work.

Remember, sleeping (Z key) is exclusive to single player only; resting (R key) should work in both single player and multiplayer.