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Location: Skaal Village, outside the Greathall, Korst Wind-Eye
1. Before you attempt to rest, it's a good time to prepare for your final battle and the fights that lead up to it. Make sure you have a way to repair your weapons and armor, helpful restore and fortify potions if necessary and a slew of enchanted magic items. Or, simply be an extremely high-level PC with hundreds of hit-points and deadly weapons or spells. The next time you rest, you'll be awakened and surrounded by werewolves.
2. After a fade-out, you'll open your eyes to see Hircine the Hunter himself, another of the daedra lords. You're actually supposed to be in the heart of the Martaag Glacier, another point of interest on the northwestern tip of your map near the Castle.
3. Here you'll learn that Carius, Heart-Fang and Karstaag himself have all been chosen by the Hunter for his hunt. Only one will survive. The winner will face Hircine and the losers apparently die to the wolves.
4. You're to be the first to navigate a set of mazes for a chance to fight Hircine. He'll disappear after his introduction, which is your cue to activate the nearby portal to the first circular maze.
5. When you appear on the other side, you're greeted by Carius. You can choose either to join him or fight him. If you join him, he'll fight the wolves with you to the end of the maze, and will wait there. Otherwise, you're on your own.
6. Make your choice, and then begin navigating the smallish circular maze to find a chest containing a glowing key. The werewolves you fight are much tougher than their brethren topside, and are definitely the toughest creatures (in large quantity) of the entire game, both expansions and main game included. If you by accident run into 3 or 4 at once, Ctrl-Alt-Delete. Just kidding, but they are insanely tough at high difficulty levels. Try and spread them out, and use lots of enchantments. There will be a spot here in this first maze that they can group up on you. Approach large-ish areas carefully.
7. The chest here is not tough to find. Once you do, take the key, use your map occasionally and keep running along the perimeter until you find an entrance to the center of the maze. Carius will leave you now if you've joined him, and will hopefully find a way out himself somehow. He also warns you that something's not right about Heart-Fang. There's a portal to the next maze in the center of this one. Heal up, and travel through it to the Inner Ring, where you'll confront Heart-Fang.
8. Tharsten Heart-Fang offers you the choice to join as well. Either way, you will have to do battle with him in this maze. If you take him, find the chest in the maze, open it, and discover that it's empty. Now Heart-Fang will tell you that he has the key and start a fight to the death, with him as his "true form." Kill him and retrieve the key and receive "Hircine's Ring." If you decide to go it alone right there, he'll become angry, turn into something he calls his "true form" and attack. Kill him, retrieve the key and receive "Hircine's Ring." This ring, if used, will turn you into a werewolf.
9. If only it were simple to navigate to the center without fighting. Alas, there are a lot of werewolves in this small maze. Defeat them all, eventually make it to the center, and prepare once again for another tough fight, now or after you step through.
10. The portal leads to the Huntsman's Hall. Inside is a large underground arena with one creature in the center. This creature is very tough, kind of a mini-boss. It's Karstaag and he doesn't have much to say. He'll attack you. Prepare and then kill him. After he's dead, prepare for the last battle.
11. Before you move toward the portal on the other side of the arena, prepare yourself. Heal and get your enchantments ready to use because this is it. Approach the portal, where Hircine will appear.
12. Once his speech is through, you'll be given a choice. What's the warrior's greatest attribute. Is it is Strength, Speed or Guile. Depending on which you choose, Hircine will take different attributes that coincide with your choice, and drop different items when he's defeated. If you choose Strength, he will be extremely strong but slow. If you pick Speed, he'll be extremely fast but will hit for less damage, and dodge your own attacks more. If you choose Guile, he'll be a lethal combination of both. Either way, choose which style best fits your attack strategy.
13. When he's defeated, check his corpse, retrieve the key and the powerful item he dropped, and exit through the portal. Now it's FMV time, and you'll be spit out outside the Ice Castle, to continue as you desire. If you return to Korst and/or check on Carius, they'll both have something to say.