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1 - First Camp
Upon entering the area head south to the first camp to find sleeping Goblins, a Goblin Shaman, Goblin Warriors, Half-Goblin Hordlings, Goblin Elites and Mokrul. This can be a difficult battle. They will attack all at once. Stay in the tunnel and cast some web or entangle spells to detain as many as possible. You will find some useful spells in a couple of the tents and some ammunition. Return outside to rest your party before proceeding.
2 - Second Camp
This camp has an Orc Witch Doctor, Orc Shaman, and Orcs. The Witch Doctor and Shaman can cast some pretty harsh spells. Focus your attention on them first then kill the rest of the Orcs. The Orc Shaman can cast Hold Person; which can be very frustrating. In the camp you will find some healing potions, spells, and more ammunition. Again return outside to rest your party.
3 - Pondmuk
You might have noticed Pondmuk pleading for his life before you actually see him. He will ask that you bring him some spiders in exchange for a password needed to open a door. He will tell you where the spiders are located. You can ask him about resting and he will tell you only after you bring him the spiders.
4 - Third Camp
In this camp are Orogs, Goblin Worg Riders and Ogrok. As before there are a lot of them.
5 - Spiders
Through the door you will encounter Wooly Spiders and a Wooly Spider Queen. These are all pretty easy to kill. The spider corpses weight a lot; you may need to have several people carry them. Search the room for loot. Return the spiders to Pondmuk and get the password, "Chimera". DO NOT ask Pondmuk to watch over you while you rest. He will bring several Goblin Worg Riders and a Captain to attack you.
6 - Door
Now you can use the password to get through the door. The Door Guard will attempt to go use a War Drum to summon Goblin Worg Riders. Kill him quickly to prevent him from using the drum. On his corpse you will find a key. Inside you will find a Hardened Fire Troll. He isn't too difficult to kill. Destroy the War Drum.
7 - Vunarg
Talking with Vunarg you learn that he is unhappy. If you have someone with high Diplomacy you can talk him into not fighting you and leaving. Otherwise Vunarg and the Goblins will attack. Either way makes no difference.
8 - Ygoug
Do not attack Ygoug or his whelps. Do not have a Paladin talk with Ygoug. He will tell you that Kruntur has a message from his masters and won't give it to him. He asks that you get the letter from Kruntur and bring it to him. He doesn't want you to kill Kruntur. He will give you a password to use to pass through his guards: "Xvim".
9 - Passage
In this passage are some Goblins, as well as a Troll and Hardened Fire Troll. You can bypass this passage if you wish. The Troll will need to be "burned" in order to kill him.
10 - Orog Chieftain
Here are some Orogs and an Orog Chieftain. They are easily killed.
11 - Exit to Level 2
This is the exit to Level 2. Rest your party before entering.