SPOILER
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I believe this is the place you get the arms and legs! At least that is what I was told when I asked the same question. However, when I went back there, there were no arms and no legs?
As for the key....what door are you talking about. I don't remember needing a key for the Unseeing Eye Quest. You do need the 'sewer' key to open another door in the sewers. This can be found out in Windspear Hills
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Outside of a dog, a book is a man's best friend. Inside of a dog, it's too dark to read.