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Check out flechette's walkthrough for the Pit of Despair. Also some pointers to tips here:

Pit of Despair

I found some info from other posts and summarized it here:

Effects of Skill and Stat Levels

Actually, that you should use weapons closer to your strength is a rumor. Experience is mostly about how much damage you do. For each point of damage you do, you get a portion of the target's experience value. And true enough, usually weapons that have higher reqs do more damage, but it's not ...

You have to talk to the priestess in Elddim (and thus get the townstone quest) to open the sarcophagus.

To get the gavel of convening (behind the locked door), you need to talk to the guard (the guard captain that the blacksmith refers you to the first time you talk to him) who is supposed to give ...