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This area is located just to the east of the Larswood forest. It is inhabited by an unusually large number of spiders and ettercaps, so watch out. There is nothing of great importance here, so it may be avoided if you wish.
1 - Fahrington / Ettercap
You'll meet Fahrington here (#1). He'll offer to "brighten your karma" if you retrieve a scroll for him. The scroll was stolen by a tasloi who headed east towards an ettercap lair. You'll find the scroll on an attercap (#1a). When you deliver it to Fahrington, he'll allow you to keep it, and you'll also earn 300 xp. However, the scroll is a Cursed Scroll of Foolishness, so don't read it.
2 - Red Wizards of Thay
On the platform here you'll encounter four Red Wizards of Thay: Brendan, Denak, Diana, and Lasla. They'll attack you no matter what you say to them (unless you have Edwin with you, who is also a Red Wizard of Thay), so be ready to fight. There are a few ways of dealing with the wziards -- Silence, 15', summoned monsters to act as fodder, a quick Fireball while they're bunched together, or just charging at them if you're feeling brave.
Note: You'll have an easier time in the battle if you approach the wizards from the south (where the staircase up to their platform is).
You'll earn 2400 xp total for defeating the wizards, and when you loot their corpses you'll find two
Mage Robes of Cold Resistance
Mage Robe of Electrical Resistance
Mage Robe of Fire Resistance
Potions of Healing
Ring of Energy
, 345 gp, and a few scrolls:
Protection from Petrification
3 - Spider Battle
At this spot you'll encounter four giant spiders, a phase spider, a sword spider, and a wraith spider -- plus a trio of web traps. The easiest way to deal with the spiders is to creep up on them so they charge at you one or two at a time. You'll earn 6600 xp total for the battle.