The Unbeaten Path
Quest Information
Starting Location: Coldcorn Fort
Starting NPC: None
Possible Reward(s): A Dagger of the Inferno or other random items, depending on your level.

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This is another quest that is not in your Journal. You need to find Fort Coldcorn, which is between The Imperial City and Chorrol in The Great Forest, next to the "t" of "Great". You must first find a chest on the east side of the castle. Although you can see this clearly in daylight from above the castle, it is quite tricky to get to it. You have to jump up at the lowest point of the ledge that surrounds the fort and work your way round until you can jump up to the level of the chest. Take the contents of the chest, which includes a note, and read it.

It says that the sword "points the way", and you are looking for a big rock. You should then spot the sword, which is lying nearby. It points approximately northeast. So take it and follow this route.

If you haven't gone potty searching for it, you will eventually find the other chest. It is down the hill to the south of Glademist Cave, but there are a whole lot of big rocks in the area. The stuff the chest contains depends on the level you have reached.