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1 - Ruknar the Tavern Keeper
2 - Tarin, Lyen and Ghan
Although they sound like a firm of lawyers (especially the "lyen" part), they're actually adventurers. When you enter the tavern for the first time, you'll see Tarin winning at a hand of cards and the other two not being especially happy about it. If you want, you can join them for a hand and potentially win 60 gold.
Whether you decide to play or watch, Ghan will lose the next hand of cards, and, after smashing the table, he'll tell you how he lost a soul brooch
to a shady character named Mylok. Tarin will then offer you 100-200 gold to retrieve the brooch for Ghan.
You'll find Mylok in the Market District south of the gate to the Imperial District. There are a few ways to deal with the situation. You can buy the brooch for 50-75 gold, you can steal the brooch (provided you can spot and pickpocket), you can intimidate Mylok into giving it up, and you can kill Mylok for it. Regardless of the method you choose, you should receive 250 experience once you've acquired the brooch. You can earn an additional 75 experience for killing Mylok.
Note: If you want to kill Mylok, but you have trouble with the battle, then you can draw him into the center part of the district, and nearby guards will help you out.
Back at the tavern, you should talk to Ghan so you can return the brooch to him. However, if your dialogue choices result in Ghan refusing the brooch, you can always give it to Tarin. Regardless, Tarin should give you 100 gold for your efforts. If instead of the above scenario you'd like to be a little more evil, you can tell Ghan that you're keeping the brooch and then sell it for over 400 gold.
After completing the soul brooch
quest, some fellows led by a man named Malthar will walk over to Tarin and ask him to play cards. No matter what you do, Tarin will end up kidnapped, and Lyen will ask you to help rescue him. Although the quest sounds optional, it is required to further the plot, and so you should agree to help Lyen. If you don't agree, then Lyen will leave and you'll have to rescue Tarin on your own.
You'll catch up to Malthar in the northwestern corner of the Market District, but as soon as he sees you he'll flee into the Boat House. The Boat House was locked previously, but now you'll be able to enter.
The Boat House is the lair of the Nightcrawler gang, and you'll have to fight or sneak your way through a few of them, including Malthar, before you can get to Tarin on the western side. Once you've spoken to Tarin and escorted him out of the Boat House, you'll receive 500 experience and 400-500 gold, and Tarin will decide it's high time he left the city.
3 - Mikel Ravenclaw's Chamber
At the start of the game you won't be able to enter Ravenclaw's chamber, but eventually you'll learn that Mikel is behind a plot to assassinate you and your father. At that point you'll have a few options for how to deal with the door guard to his room. You can use diplomacy, bribery, trickery (if you're female), violence and more. One way or the other, you should be able to go through the door.
Once you've met Mikel, you'll have a couple options for how to deal with him. If you fought his guards to get into his room, then you'll have to fight him too. If you used another method to get past his guards, then you'll be able to talk to him and agree to a truce. Either way you should gain 300 experience and learn that Chancellor Varhun is behind planned assassinations.
Note: If you kill Mikel, then you should find Mikel Ravenclaw's key
on his corpse, which you can then use to enter his bedroom and loot a chest. There is also a storage room that does not require a key, and if you loot the (locked and trapped) chest there, you can find some rations and a rogue's ring
To advance the plot at this point, you'll have to go and confront Chancellor Varhun in the Imperial Grand Hall.
4 - Kara's Room
Once you've witnessed Kara Dy'nesh stealing a bloodstone
from Nelgir in the Market District, this is where you'll find her. However, to enter her room you'll need to persuade or bribe Ruknar the Tavern Keeper (#1) into giving you the key.
Kara is mostly involved in Nelgir's quest from the Market District, and that quest is covered in the Market District section. But after completing the quest, you should encounter three disciples of Akhana at the gate to the Imperial District and discover that they're looking for Kara.
No matter what you say to them, they'll find Kara, and then you and Kara will have to fight them (either you'll lead them to Kara directly, or they'll follow you when you try to warn her). If you didn't steal the bloodstone
for Kara, then the fight will go much easier because Kara will be able to cast a spell to damage the trio enough to make them all badly wounded.
Once the disciples are dead, you should find an enchanted tower shield
and the flail doombringer
on the leader Ghasaran's corpse, and Kara will decide it's time she fled the city.
5 - Slavers' Room
The slavers are involved in the quest from Markius. See the Market District section for details.
A. Door back to the Market District.