The Twisted Rune battle is in the Bridge District lower left section, but you need a rogue stone for the door to open. *THAT* was a much more difficult battle than the guarded compound. Although not an easy battle, I never hesitated to do the guarded compound early on, 'cause there's some really nice treasure. Make sure you have some oracle and breach scrolls and you will do much better with the mage and thief.
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