The final dungeon!
When Krohn sees the two Writs of fate, he gives you the key to Njam's house and asks you to find out what Njam is planning. Njam's house is NE of the baths. (Note: I was unable to open this door until I realized I had to have the person holding the key active!)
Note: Many readers have reported (and I also confirmed) that battling in turn-based mode in the bathouse (aginst the concubines) or in the 1000 Terrors (against demons) can cause the game to lock up. Play this section in real-time mode. For the concubines, it might is possible to kill all but the last concubine in turn-based mode then switch to realtime for the last one.
Inside you find a scroll on a desk. Njam rushes in. Take Krohn's advice and run like mad out of there! Report back to Krohn, and receive your final quest: lure Njam into his own trap deep within the Tomb of 1000 Terrors.

This 3-level dungeon is filled with demons, beholders, and Desert Terrors. Plus, Njam shows up many times to beat on you, then runs away just when you are starting to hurt him.
The two rooms at "A" have nice chests, and a pair of dueling statues that keep hitting you in their crossfire. The door at "J" is locked. You need a key to move on to level 2.
(Note: the area between "K" and "M": in the NW is part of level 2.)
Head into the room at "B". Lots of beholders in this area. Once they are cleaned out, you can jump across on the blocks (they sink as you stand on them) or swim. If you stand on the central block (right under the "B") and let it drop, you will see a hidden switch. It opens secret area "D." Inside, guarded, are two nice chests. At "C" are another pair of dueling statues. Stay out of their line-of-fire as you clean out the beholders, then loot the rooms.
Either the door or the tunnel "E" lead you to the next section. The puzzle doors at "F" are not hard to figure out. ( Does rearranging the letters N-J-A-M give you an idea?) )A "reset" button is next to each. When all squares are depressed, the door opens.
The hallway at "G" is trapped with fireballs. At level 48+, just run down the side and you take little damage.
Room "H" is tough, but rewarding! Four demons, beholders, and good old Njam himself. Defeat them, wait for Njam to run away, and loot the chests. Three black chests! Plus, the key to the stairway. Another NJAM puzzle door to get out.
Ready for level 2.

The stairs lead up to the skull room. The skull shoots fireballs while demons and beholders attack. The area is very dark -- light your torches before entering. (Note: I ducked out, then back in, and found the skull had now stopped firing, and did not restart on my 2nd entry.)
Careful!!! The trap at "N" leads to death even for a strong party! The outer two of the three switches are safe. But the middle drops you into a pool full of beholders, demons, and Desert Terrors. You are surrounded, trapped, and the only question is if you drown before they kill you. From location "O" you can work your way back and clean out this area a lot more safely.
At "O" is a genie lamp. I rubbed it, some smoke came out, but I never saw what actually changed.
Open Question: What did the genie lamp do??
Head down the stairs into the water, and clean out all the nasties (lots of demons, beholders, and desert terrors) down there. Work your way to the chess room. There are several pieces on the board (2 pawns, 2 knights, 2 kings.) Don't step on any squares they guard. At the far side are two black chests, and Njam makes another brief visit. You also find the maze key needed to access the final area.
For those who do not play chess, do not walk on the gray squares:

Open Question: Is there a way into the rooms at "??P??" (Update thanks to Chang, Jinx, Fire, Claus --- There are two ways into area "P." You can jump the bridge if you first cast fleetfoot on the party. Also, if you are standing on the broken bridge and look to your left, you will see broken pillars that let you jump your way up to the area. Inside you battle a couple lesser terrors, and meet up with Njam again.
Now, head through the water to the hard to find rap leading up to the area at "Q". Demons and Njam guard some treasure. Njam also shows up at "S."
Time for the maze. use the maze key from the chess room. Not much treasure or opposition here -- mainly beholders and a couple demons. Get to the far NE corner, cross the bridge, and follow the narrow path to position "L." Looking back at the level 1 map, work your way to the elevator at "M". There are traps in both hallways.
The final confrontation:

You enter at "A." When you get to position "B," Njam (cutscene) tells you he will disappear and come back when you are dead.
Just at the entry to "C" is a trap.
At "C" starts one of the toughest battles in the game. The chess pieces come to life as lesser demons, along with lesser demons and beholders from the large area to the east. Six lesser demons and 6 beholders sounds simple? Well, when you kill these lesser demons, they are immediately resurrected as greater demons.
When finally done, you enter the main room. It looks like nothing special. How do you convince Njam you are dead so he will return?
Enter the secret room and hide at "D." A cutscene takes over. You've done it. Mrs. Filbert's frozen Njamwich.
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