I seem to remember that the circular key is somewhere in the Graveyard south of the Arnika-Trynton road. True?

Also, the walkthru segment concerning the graveyard says that I should pour some Holy Water on the hanging skeleton in the Crypt within the Graveyard for an XP bonus. Well, Holy water is used in combat only, and if I enter combat to use it, my priest says he can't. What am I missing?

Hi Lat!

You will find the wheel key in Arnika, in a part of the temple. To use the holy water, pick it up with the cursor while you're in the inventory screen, then exit (so that you cursor still holds the holy water) and click on the skeleton -- voila!

Never forget your towel, cheers
Philipp