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In Tribunal, under Mournhold, there is a place you enter that says something along the lines of: "A rancid stench nearly overwhelms you. This is not the smell of the dead... there is something else here."

Then I can look around the place, but there is still an area I cannot access. What are you supposed to do, and what is the point of the dungeon?

I have been all over that cave and everywhere around it. I can find nothing. I have just assumed it was a glitch that it never finished playing out. For a newbie(at the time lvl 16) it was like a horror film though.

Isn't that an ancient Daedric burial ground, where you are attacked by Liches ?

It's a Bad JuJu Place

SPOILER: You've just found the burial chamber of a very nasty undead being. Its in the dungeons, and if I'm not mistaken, its an offshoot of the path you and the cleric took to cleanse the ancient temple shrine. Once you've opened and entered the liches area you've unknowingly triggered a quest. Go back to the healer in the temple and she will tell you about a plaque you've released on the city - diseased rats. She will tell you to go back to the tomb and kill what's in it. Now the tricky part. You have to find the trigger that opens a secret door. Its a stone on the floor, very hard to spot. Find it and stand on it. Once you've opened the secret door go in and kill the undead (a particularly nasty lich I believe) if you can. I think the lich uses reflect spells, drain health, etc. and also has a host of summoned skellies to fight for her. Buff your char up really good and try to take it out before it gets a shot in. Be prepared to reload often and good luck.