Okay I killed Scabban to, you do want to kill him (Its a wizard guild quest). Secondly that treasure chest there are actually 2 there, I used the crate/barrel method as well but once i got up there I realize how you are actually supposed to do it =). Okay at the entrance to the water tunnel below scabban's room you can get out of the water and walk back toward scabbans room (though you are a level below it). You go through a room that has bones hanging on the wall and chains in various places in the corner of this room there is a button. Hit this button, Then you head toward Scabbans room again. About 2 turns before you reach Scabban's room a little way after the ramp going upstairs you will come to a hallway that has stairs going down on one side and stairs going back up on the other. (it is the only straight hallway that has these stairs). Now if you hit that button a door should have open on the right wall that is a step or so above the ground floor. Jump into the doorway and then you get those chests. (if you understand that I will be amazed =))
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