Lawenilothehl is an outlaw village found to the southwest of Terinyo. The name is an anagram of "hole in the wall", American slang for a shabby place. It contains a variety of shady characters who can be useful.
1.2.2.1 Yergius
Yergius is the head of the Thieves' Guild. He can teach or train a variety of useful skills for non-lawful PCs. They are Climbing, Detect Traps, Disarm traps, Pick locks, Pick Pockets and Stealth. Yergius teaches Pick Pockets to any non-lawful PC at no cost. Bear in mind that obtaining even the Pick Pockets skill from Yergius is a chaotic act. He will only teach or train the remainder of these skills once the PC has demonstrated his talents as a thief. In practice, this means that the PC must successfully use the Pick Pockets skill 28 times (according to the recent best estimates) against monsters vulnerable to this skill. This includes most humanoids, constructs and undead. Animals in general do not have pockets to pick, although ratlings (not rats or giant rats, but archers, duelists, fencers, etc.) are vulnerable. A successful application of the skill will result in a stolen item being added to the PC's inventory, or the message "The -foo- does not seem to own anything valuable." Note that Yergius' initial training results in a Pick Pockets skill level of one. This means that it is not really useful for picking pockets until it is trained and an experience level or two has been gained, thus making it eligible for advancement. It is useful for angering nonhostile villagers. Those villagers in line of sight may also become hostile. Fumbled Pick Pockets attempts are thus a way to generate hostile villagers without Confusion Blast, Stun Ray or Ventriloquism. Thrundarr has been moved off his lever with a low Pick Pockets skill.
Using the Pick Pockets skill against nonhostile monsters or monsters that are unaware of the PC is a relatively minor chaotic act, and furthermore seems to have a limited alignment effect. PCs never seem to become C- by using Pick Pockets.
It is also apparently possible to satisfy Yergius by robbing shops, but the quantitation is not understood. Furthermore, he will not teach Pick Pockets to a PC that has already robbed a shop. So if you want a PC to have access to the Pick Pockets skill, do not rob shops before obtaining the skill. Robbing shops is a very risky activity for PC's less than experience level 20 anyway.
The main initial reason for attempting this quest is to satisfy Yergius and receive the Detect Traps skill from him. This makes the underground level of the Dwarven Graveyard and the Pyramid in general much easier and safer, not to mention the elemental temples.
After satisfying Yergius he will teach new skills for prices ranging from 3000 - 4000 gold pieces. Detect Traps in particular is well worth the 3500 gold pieces it costs. He will also offer training of two different types: theoretical and practical. Theoretical training will raise the PC's dice modifier available when experience level advancement occurs. The maximum is +4d5. This is simply a matter of cash. If the PC has plenty of money available and wants to maximize a skill that Yergius trains quickly, pay him whatever is required to get the modifier to +4d5. The second form of training he offers is practical. When the PC trains in this way, it adds successful skill checks to the skill, making it easier to advance. This also is a matter of cash. It is a very good idea to use this practical training if the PC is about to face an area where a newly learned skill will be needed. Again, the underground level of the Dwarven Graveyard and the Pyramid are obvious examples of areas where the Detect Traps skill will be needed, while the PC has probably had little time to train the skill.
Another example where Yergius' theoretical and practical training can be very useful is the Climbing skill. Climbing = 100 is required for entering the Rift, which is something all spellcasters should seriously consider for access to the Sinister Library of Niltrias. Trolls should also visit the Library for much-needed experience. It is possible to train Climbing without Yergius' assistance, for example by mountaineering, but this takes place in the wilderness, thus wasting large amounts of valuable time.
PCs who kill Yergius become the new head of the Thieves' Guild and as such receive 50% off the prices at Barnabas' black market (see next section). Of course killing him means that he is no longer available for training, so take advantage of his training before killing him.
Yergius also sells thieves' picks to non-lawful PCs with the Pick Locks skill who have no Thieves' Picks.
1.2.2.2 Barnabas
Barnabas maintains a general store type of shop in Lawenilothehl. As might be expected from the general atmosphere in the town, it is a black market. As such, the prices demanded are very high. Nevertheless, it is worth visiting. Simply observing what is for sale identifies items. Barnabas also usually has rocks for sale at relatively reasonable prices, which can be tremendously useful for hurthlings. Barnabas occasionally has high quality items for sale, which can be within the monetary reach of PCs who have done the Kranach quest. In addition to the 50% reduction in prices for being head of the Thieves' Guild (see above section 1.2.2.1), Barnabas also changes his offers when the PC sells items: 1/4 of base value for nonmembers, 1/3 of base value for members and 1/2 of base value if the PC is the head of the Thieves' Guild, regardless of whether he was a former member or alignment.
1.2.2.3 Kranf Niest
Kranf Niest is a nefarious doctor in Lawenilothehl. He can teach PCs the Healing skill after completing Hotzenplotz's Jharod quest. Kranf Niest does not have the gentle touch of Jharod. When a chaotic PC learns the Healing skill from him, the PC is teleported away in a stunned and confused state, loses 1d3 points in each of the Appearance, Learning and Willpower categories and is corrupted slightly (1%). During this process, Kranf Niest removes any helmet the PC might be wearing, even if it is cursed. If the PC already has Healing, Kranf Niest gives the PC a scalpel and stethoscope. It is a chaotic act to attack Kranf Niest, but the PC receives a small net lawful boost for killing him.
1.2.2.4 Skriek
Skriek is a ratling found in Lawenilothehl. He sells random keys for the seemingly exorbitant price of 470 + (30 × PCs experience level) gold pieces (verified to experience level 11) to male PCs. Female PCs receive a 50% discount. Skriek becomes hostile if the PC kills Hotzenplotz, one of Tywat Pare's quests, but can be lured away from Terinyo, in which case he will continue to sell keys.
1.2.2.5 Hotzenplotz and his guards
Hotzenplotz is a crime lord found in Lawenilothehl. He assigns two quests. The first is to kill Jharod, the healer. Jharod, and thus this quest, is only available if the PC has chosen Rynt's Yrrigs quest rather than Guth'Alak's Keethrax quest. Hotzenplotz arranges for Kranf Niest to teach the Healing skill as a reward. The second is to kill Tywat Pare. The reward is an amulet of Chaos. If the PC is on a mission from Tywat Pare to kill Hotzenplotz, a couple of points are worth remembering. Hotzenplotz is fairly tough and uses poison. He will kill a PC without poison resistance in melee quite easily. Second, he does not heal. A PC can attack him, run away into the wilderness and repeat this process until he is dead. The combination of these two characteristics should make it clear that the best way to attack him is with missiles or ranged spells.
It is possible for a relatively low level PC (especially hurthlings) to kill him with thrown rocks, but special tactics are necessary. Lure him out of his hut and flee towards the right side of town while pelting him with rocks. Leave town and reenter from the left. Continue to throw rocks until he succumbs.
Hotzenplotz sees invisible. Do not rely on invisibility when engaging him.
Hotzenplotz and his guards can be exploited. They will often attack hostile monsters that are led into their hut. If one of the nastier monsters found in Lawenilothehl (assassin, outlaw leader) attacks a weak PC, run for Hotzenplotz's hut.
1.2.2.6 Other inhabitants of Lawenilothehl
The other inhabitants are simply flavor elements with no real role in the game. They include assassins, muggers, beggars, cutpurses, bandits, outlaws and outlaw leaders. Beggars are useful because they will drop a potion of booze if the PC gives them ~50 gold pieces and then 'C'hats with them. It is always cursed. Remember Yggaz, the fool in Terinyo, will trade random potions for potions of booze.