SPOILER
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Go to the docks - beside the inn - there is a door which is locked. Open it (with a knock spell perhaps) and then go inside. BEWARE!! The Door is trapped!
Then kill the minotaurs and downstairs you'll fight the ultimate undead monster of the game: Kangaxx. He's a tough one - but with the proper spells/equipment, it shouldn't be too hard.
Good Luck
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