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Black Palace
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This is one of the more annoying parts of the story dungeon as it's hard to see where to go next, and the levels are quite large. Dragonkin and dark servants/disciples are the most common enemy here. Two things of note here include blue portals which summon cat monsters (about 4 each) and teleporters, which are red circular platforms on the ground. Teleporters usually take you to a secret area with loot, so be on the lookout for them. Phase beasts can also be found in this region.

On level 31 you'll find Syl guarded by a boss. Free her and follow her to a waypoint.

Level 34 holds Alric. Hit him until he runs away.

Level 35, the lair, holds Ordrak. This is a tough fight, so keep up your defenses, and be sure to bring along a bunch of healing potions. Ordrak will summon dragonkin as well as enslaved skeletons. Hit him with your strong attacks. When he falls, Syl will show up and congratulate you. Then when you return to Torchlight, you'll find some new things to do, especially if this was your first run through the story dungeon.