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This is the entrance from the Palace Gardens.
Fleezam is a swordsman and trainer, and is practicing in this room. If you have a Bard in your party you should speak to Flozem at area four before entering this room. You will have to fight Fleezam whatever you say or do. When the fight is over search Fleezam's body and the chest and bookshelves in this room for treasure.
In this room you will meet Ginafae, Marketh's dark elf concubine. Speak to her and you will find out that Marketh has beaten her regularly and blinded her in one eye. She is the sister of Malavon, whom you may have met in the Artisan's District, and has been placed under magical wards which prevent her from leaving.
If you have already been to Malavon's Dome in the Artisan's District you can use the Oil of Null Effect to remove the wards and free her, but she will only accept your help if you let Marketh leave without fighting him on the floor above.
Flozem is the painter of the portrait that Callard is using to sculpt the statue of Marketh back in the Palace Gardens. If you have a Bard in your party you can convince him to leave and follow his dreams of becoming an artist. If you don't have a Bard in your party, or don't think his talent is worth nurturing, you can kill him and collect his equipment, which includes a belt that raises its wearer's strength to 19. Search the bookshelves in this room to collect potions of Clarity, Insight and Insulation.
Search the table in the kitchen and pick up the Sack of Potatoes. You will need this when you reach the Svirfneblin in the Gnome Pit area.
This exit leads to Old Dorn's Palace II.