The Beastmaster is a special goblin I believe in one of the battles early on in the Severed Hand section of the game.

That special goblin....
Spoiler...
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The Goblin you want to look for is on the first(Area 1 map) or second floor(Area 2 map) of the main tower. The battle will probably take place on the left hand side of your screen. If you look carefully after each Goblin battle you should find a bag. This bag is a broken Bag of Holding. It will give you, randomly, anything including some good stuff. If you want better info look at the maps section here in Iron works for a close to exact location.
http://www.tgeweb.com/ironworks/icewind/worldmap.shtml
http://www.tgeweb.com/cgi-bin/ubb/no...iles/hippy.gif

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http://home.online.no/~tobak/bloodshadows/crest.gif