Welcome to the board, busta191!!!
Ah glowstones - I know about those!!
The game sometimes does not generate the glowstones. Others have said that if you reset the dungeon - which I think must be more than just starting at the entrance, that you can solve the problem. So try this - from your save outside of Collasium - return to the surface, save and then go try the city again. Or return to the surface and then to land, save and then try again. Saves just outside of the city don't seem to be enough to trigger the needed change.
If that still doesn't work - you can hack a Glowstone. It was because of the missing Glowstone that I figured out how to hack items in W&W. It isn't difficult to do.
I've explained how to hack items in this thread:
http://www.ironworksforum.com/ubb/cg...=007364#000000
This includes the necessary code for Glowstones!
Hope that will solve your problem!
Wyv