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There are two balconies and two chests. The "Strange Key" that looks like a crank is in the chest on the balcony that has only one door. The chest is sort of hiding behind some crates and I mistook it for a crate the first time. I almost ignored it, but I wanted to make my map complete so I moved closer and realized my mistake.
That will not get you the fifth element, tho. But you do need it to open up the room so you can perform the ceremony. Have you talked to Ardibren outside the walls yet? He gives you one of the elements and tells you the locations of the others.
Good Luck,
Knarfling
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