Speak to the Gardener Ghost in the room to the north, with your Amulet of Ghostspeak on and ask him about his head. He says that it was chopped off, and he will eventually follow you into the woods to show you where it happened.
Leave the castle and head south, past the dead trees, and then head southeast into the Haunted Woods until you reach Ed Lestwit's grave marker. You'll find various creatures here, including level 61 and 72 Vampires, and level 52 Leeches. You can also speak to the ghost to see which way to walk. When you find the grave, just Dig with your Spade until you find a Decapitated Head.
Head back to the castle and go up the northwest staircase. Inside the nearby room is a Bookcase, which you can search for "The Joy of Gravedigging" to get a Marble Amulet. On the east side of this floor is another Bookcase, which you can search for "Handy Maggot Avoidance Techniques" to obtain an Obsidian Amulet. Use the 2 pieces together to form a Star Amulet.
Keldagrim
Keldagrim is a large, underground dwarven city, a center of prosperity, trade, and technology. As you make your first boat trip in, you'll pass under the huge council building, where many trade companies barter and trade on a floor named "The Octagon" On the first floor on either side of the river are a multitude of services and shops, who could always use a helping hand. On the West side of the river you'll find more shops, a bank, and even the HQ for the dwarven black guard.
On the eastern side, some might consider it the slums, you'll find a few more shops, some run-down housing a coal mine, and some cart transports, a new form of transportation that takes you to White-Wolf mountain (for 100gp) and Ice Mountain (for 150gp).
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