There are many important people and places scattered around the Drakalor Chain. All of them will be useful in one way or another.
A small village inhabited by friendly farmers. The most important people would be Rynt, the Druid, and the Sheriff. The elder and druid both offer a quest, you can only choose one or the other (whichever you talk to first).
Rynt, the Village Elder
He will give you a quest to help Yrrigs, the Mad Carpenter. This quest will get you the Bridge Building skill, and possibly Healing and an Oil of Rust Removal. Completion of this quest will also give you a small discount in Munxip's store.
Guth'Alak, the Druid
Talking to him will get you a quest to kill the evil druid Keethrax. Be careful, this is quite hard for low level characters. Once the Keethrax is dead, you get the Black Torc off his corpse, which gives you a speed boost. At level 30, he'll tell you to find the Greater White Unicorn, who will give you another quest. You can give him the corpses of Chaos creatures for Potions of Cure Corruption.
Twyat Pare, the Sheriff
If you talk to him before you reach level 6 (level 5 for Trolls), he'll ask you to kill Kranach, the Raider Leader for a 3000 gold reward. Eventually, he'll ask you to kill Hotzenplotz, the Crime Lord (who will ask you to kill the sheriff). Succeed and he will give you an Amulet of Order. If you complete both, he'll also teach you the Law skill. He will give you a 100 gold bounty on Raider corpses and 75 gold for Outlaws.
The Tiny Girl
This cute little girl has lost her puppy (snif). She will tell you that her dog is in a cave to the NE. You have three days to save the dog, or all you'll find is a cute dog corpse.
Blup, the Baby Water Dragon
If you give him enough Potions of Carrot Juice he'll teach you how to swim. If you can find his mother for him (in an underwater cave in the lake NW of town), you'll get the Runed Trident (this takes a long time to catch up to you though). Tell him where mumsy is, and watch him fly off home.
Yggaz, the Fool
Talking to him will get you cryptic clues. If you give him Potions of Booze he'll give you random potions.
Yrrigs, the Carpenter
He only shows up if you took him to Jharod to be healed (otherwise he's dead). He'll train you in Bridge Building.
Munxip, the Shopkeeper
He runs the food shop in town. If you see food items of the same type for different prices, the lowest priced ones are usually cursed.
This is the Outlaw Settlement. Naturally, it is inhabited by Assassins, Beggars, Cutpurses and other undesireables. Be very careful at low level. The most notable people here are the Master Thief and the Crime Lord.
Yergius, the Master Thief
Talking to him when not a member of the thief's guild, will get you the Pick Pockets skill, and an invitation to return when you've proven your skills (successfully use Pick Pockets about 30 times). He will now make you a member. As a member, he'll teach you Climbing, Detect Traps, Disarm Traps, Pick Locks, Pick Pockets and Stealth. You can either get a direct boost to any skill, or a raising of the die value for when you gain a level. If you feel you've learnt all you can, kill him to become the new Master Thief.
Hotzenplotz, the Crime Lord
He will offer two quests. The first is to kill the Sheriff. This will get you an Amulet of Chaos. The second quest is only available if you haven't taken the Druid's quest. You will have to kill Jharod, the Healer. When finished, talk to the Mad Doctor for your reward (the Healing skill). Hotzenplotz is the target of one of the Sheriff's quests.
Grunge and Munge, the Half-Orc Bouncers
They don't do much except protect Hotzenplotz.
Kranf Niest, the Mad Doctor
If you have killed the Healer for Hotzenplotz, he'll teach you Healing. But he'll drain a few Learning and Willpower points while doing it. He will remove any helm you're wearing, which makes it possible to get rid of a cursed helm you got stuck with. He'll give you a Stethoscope if you already know Healing.
Shriek, the Cloaked Ratling
He'll offer to sell you keys at insane prices.
Barnabas, the Shopkeeper
He runs the gift shop. His prices are very steep, but he does sometimes carry some rare items.
Once you talk to the Tiny Girl, this cave will appear back along the path you started on. There is always an ant hole in this dungeon.
The Cute Dog
The idea is to get to this puppy before some big, bad nasty comes by and squashes him. If you don't find him in three days, you'll just find a Cute Dog Corpse. Get the dog or his corpse back to the Tiny Girl.
The entrance is only revealed once you recieve a quest from either Rynt, or Guth'Alak. Depending on whose quest you're doing, the dungeon will be slightly different.
Jharod, the Healer
He's on the 4th level of the dungeon, usually near an altar. He'll teach non-chaotics Healing, and give you a Stethoscope if you show mercy by bringing Yrrigs to him. He can heal you seven times. You can also have him heal injured monsters. He's a target of one of Hotzenplotz's quests.
Yrrigs, the Mad Carpenter
You can either kill him to get a Hatchet and his Manual of Bridge Building, or have him follow you to Jharod to be healed, which will also get you an Oil of Rust Removal. Then you can find him in Terinyo. He will try to kill you on sight when you meet him in the dungeon.
Keethrax, the Corrupted Druid
He is the target of Guth'Alak's quest. Kill him to get the Black Torc, an artifact that gives you a speed boost.
This is the lair of Blup's mom. It is in the small lake to the north west of Terinyo. You will have to swim in and search for an entrance.
Shyssiryxius, the Female Great Water Dragon
After talking to Blup, come to see her. Chat with her then return to tell her son where she is. This will get you the Runed Trident. It's an artifact that will be sent to you. Unfortunately it takes a long time to reach you. She is guarding a huge horde of treasure. If you're Chaotic and very powerful, you might want to kill her for the items. She'll attack you anyway if try to take anything.
This village is only reachable if you go through the dungeon to the NW of Terinyo. You have to go down about ten levels, when you'll pop up in the bottom right of the map. Be careful in this dungeon, the first level generates creatures that are very powerful, and keep getting stronger as you do. So you can end up with rats punching through your plate mail. In the village is a stairway that leads to a cave a bit east of the Caverns of Chaos. This place has a few people of different alignments. There are things here for any character.
Hawkslayer, the Burly Adventurer
If you are high in level and not chaotic, he'll become a companion if you tell him the password (Iceberg, you may hear it when drinking from a pool).
Gaab'Baay, the Old Crone
If you're chaotic, she'll give you quests. First she'll tell you to speak to the Demented Ratling. You'll then have to find a Giant Boar's skull (you find one in a random wilderness encounter). Then give her a Potion of Cure Corruption. Then a Farmer corpse, a Scroll of Danger and a Wand of Monster Creation. You'll then recieve the Medal of Chaos. This is one part of the Trinity that is required to become a Chaos God.
The Malicious Doctor
He'll sell you a Flesh Golem for 25,000 gold pieces.
The Oracle
Once you have all three parts of the Trinity she'll talk to you, but not before.
The Ogre Guardian
He guards the jail. He only guards the actual building, you can kill the creatures inside if you want.
Leggot, the Shopkeeper
He runs the shop in town. He usually has some pretty good stuff for sale.
You'll find a small distorted cave entrance south of the Village Dungeon. The levels on this dungeon are never the same twice. Whenever you go up or down, a new level is created. This dungeon contains one part of the Trinity. The Sceptre of Chaos. It is found on level 67 of the dungeon. Be careful, this level will only appear once. So if you miss it, you'll never find it again.
Filk, the Ratling Bard
You need to kill him as part of the quest to get the Trident of the Red Rooster. He appears on the level that's the same as the number of kills you have on the first monster you killed in the game.
This is the lair of Rehetep. When you reach a high enough level he'll open the gates for you. Be careful, the Pyramid is full of traps.
Rehetep, the Mummy Lord
Once you reach 13th level, he'll send you an invitation. Check your scrolls, you're not always told you've been given it. The Pyramid is open until you reach level 17, then it closes again. When you beat him, you get two artifacts, the Ancient Mummy Wrapping and the Ankh.
Along the path that heads to the Pyramid you'll find a dusty cave. This is the entrance to the Assassin's Guild. The cave is filled with teleport traps, so teleport control is a must. The stairs are hidden. But once you find them, trying to go down is tricky. The stairs will try to teleport you away, so you have to keep trying until you make it.
The Assassin Prince
The level is full of Assassins, but this guy is the head honcho. If you can kill him, you'll get Sting, a powerful artifact dagger.
This is a safe house. You can leave items here to be picked up later. Great for when you need to drop some excess items.
The Old Barbarian
If you're not a chaotic, talk to him once you've reached 13th level and have at least 500 kills. He'll ask you to kill 20 of the first type of creature you defeated. Once this is done, return to him and he'll teach you the Courage skill.
This appears once you've talked to Guth'Alak at level 30.
Riurri, the Greater White Unicorn
If you're not Chaotic and haven't killed any White Unicorns (otherwise he'll attack), he'll ask you to kill the Greater Black Unicorn. If you do, talk to him and he'll cure all of your corruptions, but only once. It's usually better to wait until you have a lot of corruptions, so as not to waste it.
This will appear after talking to Riurri.
The Greater Black Unicorn
You must kill him to finish Riurri's quest. He'll ask you to kill Riurri. If you do, he'll corrupt you, and give you 7 Potions of Gain Attributes.
The Mad Minstrell
He will sprout little poems to you when you chat to him. These are all clues to the game. Some are straight forward, others take a bit to figure out. He's also part of the quest to get the Trident of the Red Rooster.
To enter the Rift, you need an extremely high Climbing skill, and a climbing set. It's also advisable to drop whatever inventory you don't need. When you enter, you start at the bottom of the Rift. On one of the levels you'll find two stairways up, one leads back out, the other to the Library. There you will find many useful spellbooks and scrolls.
The Librarian
He'll just keep telling you to be quiet. But he will accept book donations.
In the south-west corner of the map, you'll find a cave. In this cave is an artifact, the Phial of Caladriel. This is guarded by hordes of Gremlins. There is no light in this cave, so you'll need your own source. The cave is also filled with water traps. And we all know what happens when Gremlins get wet...
Once you have two specific corruptions, the ones that make you lose weight and become quick and nimble, you can find the Quickling Tree. Just search around in the wilderness, usually in the forests, and eventually you'll find it. You have to be carrying practically nothing to enter. Inside, there are Quicklings galore. You will also find the Boots of Great Speed, artifact boots that give +30 speed!
You need either two Rings of Fire Resistance or fire immunity to pass through safely. A Ring of Ice and Fireproof Blanket will help keep your items safe.
Ancient Chaos Wyrm
It guards the Elemental Orb of Fire. It's on the top level of the Tower. The room is filled with Red Dragons, Fire Elementals, Fire Demons, Fire Grues, Chaos creatures and, of course, the Wyrm. Prepare for an incredibly hard fight.
In the top left corner of the map, you'll find a small entrance. Inside is the Ring of High Kings. But to get it, you'll need to cross a Piranha infested lake. Either build bridges, or freeze the water. There's a Grue guarding the Ring.
North of the Rift, you'll find the Strange Stone Circle. If you have given the Demented Ratling six artifacts, you can come here for the Crown of Chaos. But it is guarded by the Multi-Headed Chaos Dragon. So you'd better be prepared for a tough fight.
Kherab, the Dwarven Artificer
He will offer quests that are very chaotic. The rewards will be the Amulet of Raw Steel for killing the Dawrven Elder, and the Shield of Raw Steel for killing the Druid. Both artifacts corrupt the wielder.
The Crown of Science is hidden away in the lower left part of the level. There is a room full of pools, a treasure room, and two rooms full of armor and weapons. There are a set of stairs that can only be used once you have found the other side, somewhere deep in the Caverns of Chaos.
This place will appear after the Dwarven Elder has given you a quest to lay Griff Bloodaxe's soul to rest.
Griff Bloodaxe, the Undead Dwarven Chaos Berserker
You can lay his soul to rest by either killing him or using a Potion of Holy Water on his grave. The grave contains Nonnack's sword, a powerful artifact.
Nonnack, the Necromancer
He is the one that brought Griff to undeath. Just kill him. He has a pair of Elemental Gauntlets, a good artifact, in a small space in the far right wall.
This is located a few levels down in the Caverns of Chaos. There will be a lot of Ratling Traders about that you can buy food from.
The Arena Master
Talk to him to get into the fights. If you beat 20 opponents, you'll recieve the Golden Gladius, an artifact to give Bart, the Grizzled Gladiator. He'll drop your winnings from each fight at your feet. After enough victories, you will be declared as invincible, and won't be allowed to fight anymore.
Champions
There are quite a few that you might face for the twentieth fight. Just kill them, and become Champion of the Arena.
Somewhere in the Caverns of Chaos, you will find a level (always before Dwarftown) that has a strange smell. This level contains the Si (Strange Item). It's a special replicating artifact. Be careful, it's always found on a trap.
A couple of levels before Dwarftown, you will find the Big Room. It covers the entire level, and usually contains quite a few herb bushes. The longer you remain, the more dangerous the level becomes.
This is quite a few levels down in the Caverns of Chaos. The main people to talk to are Thrundarr, Garth and Glod.
Thrundarr, the Dwarven Elder
He will give you several quests. The first is to kill a random monster, which will bag you a Potion of Literacy if you can't read, or will identify all your items otherwise. He'll then ask you to find the other side of the Animated Forest, which will get you a Wand of Fireball. You'll then have to wipe out a tribe of Ogres. He'll reward you with 5000 gold pieces. If you're not already Champion of the Arena, he'll ask you to become so, otherwise you'll just have to kill another random creature. This will get you Rolf's Savior, an artifact shield. You'll then have to kill a Demon (which will be in the town somewhere). This will get you the artifact called Big Punch. If you ask him about "Portal", he'll give you the quest to free Griff Bloodaxe's soul.
You can talk to him about the following things:
Shop, Waldenbrook, Garth, Glod, Gold, Innkeeper, Torgall, Gladiator, Grizzled, Smith, Mace, Hammer, Axe, Ogre, Orc, Khelavaster, Banshee, Greet, Portal, Gate, Hello, Groro, Gorko, Sis, Si, Rolf, Dwarven, City, Sage, Corruption, Chaos, Caladriel, Phial, King, High, Ancient, Bloodaxe, Griff.
Garth, the Dwarven Weapon Master
You can pay him to practice, this raises attributes (after a while). Remember, you get what you pay for.
Glod, the Dwarven Smith
He'll teach you Smithing. You can also pay him to fix broken items or remove rust. He'll charge you 2500 gold to use his forge.
Bart, the Grizzled Gladiator
If you give Bart the Golden Gladius, he'll teach you more about fighting. He'll increase all melee weapon skills and teach you Backstabbing, Dodge, Find Weakness, Tactics and Two Weapon Combat.
The Ancient Dwarf
He's in that small unreachable room to the right of the altar. Teleport in and talk to him if you're not chaotic or doomed. You'll recieve Rolf's Companion, a powerful artifact axe. You have to teleport back out.
The Priest
He'll be the same alignment as that which you started the game with (so will the altar). You can donate money to him (lawful act). If you kill him, his ghost will alert the town, and everyone will come after you.
Torgall, the Barkeeper
He'll tell you a whole bunch of rumors.
The Demented Ratling
After talking to the Old Crone in the High Mountain Village, he'll ask you for six artifacts (the Si doesn't work). If you give him all six, he'll tell you how to get a part of the Trinity.
Waldenbrook, the Shopkeeper
He carries an average selection of items. Sometimes he'll have one or two powerful things lying around.
Shortly after Dwarftown, you'll come across two sets of stairs down. One will lead to the Animated Forest, the other to the Dwarven Halls.
The Forest takes up the entire level. It is filled with Living Trees. The stairs are always in opposite corners. There are tons of Trees and several other random monsters. The Trees will all attack if you use any fire spells or wands. Get through to finish one of Thrundarr's quests.
The Dwarven Halls are a couple of really tough levels. The creatures here are stronger than usual.
Both special levels go down to the same level.
This level is mostly a huge graveyard, full of powerful undead. There are several graves containing lots of treasure, but a Lich will jump out if you dig them up, so be prepared.
Khelavaster is found some levels below Dwarftown. He went before you to close the Chaos Gate, but never made it.
Khelavaster, the Dying Scholar
Talk to him to find out about closing the Chaos Gate. He usually has Boots of Dexterity and an Amulet of Defense. If you can save him though, he'll start you on the quest to get the Trident of the Red Rooster. There's only one item that you can give him to "save his life"...
The Eternal Guardian
He guards the way into the Casino. For him to let you pass, you'll need the Ring of High Kings. Otherwise you'll have to teleport him out of the way. If you attack him, he'll give you one hell of a fight, he can even multiply.
This is the level below the Eternal Guardian.
Moorton, the Shopkeeper
He runs the store. He sells items, but won't buy anything. There are a ton of items available, and there is often an artifact or two lying around.
The Big Casino Guard
This guy is a lot more powerful than the regular Guards. It's safer to take him out from a distance.
Along the way in the Caverns of Chaos, you'll usually find at least one level with a Bee Hive, one with an Ant Hole, and a few monster lairs containing hordes of creatures.
The guardians of the Elemental Orbs of Earth, Air, Water and Mana are found on the lower levels of the Caverns of Chaos. Each of their levels only has half of it accessible. The get to the other half, you must dig or teleport over. They are all aided by creatures of their element.
Snake from Beyond
It is on the Water Level. It guards the Elemental Orb of Water.
Yuglash, the Master Summoner
He's on the Air Level. He guards the Elemental Orb of Air.
Ancient Stone Beast
It's on the Earth Level. It guards the Elemental Orb of Earth.
Nuurag-Vaarn, the Chaos Archmage
He's on the Mana Level. He guards the Elemental Orb of Mana.
You'll eventually come across a level littered with corpses. This is the lair of the Banshee. You constantly hear her wail over her lost lover.
The Banshee
She screams in sorrow. She will always be gaurding the stairs down. Her wail will kill you instantly. You need to find some way to avoid hearing her to be able to kill her. Of course, if there's something you could show her that would remind her of her lost love...
This level is split in half. The top half is pretty much empty. When you get to the bottom half however...
Bugs, the Bunny Master
He rules the Bunny Level. The quickest way over is to teleport straight down (the level is mirrored). You'll otherwise have to hack through several hundred Battle Bunnies. These things multiply like crazy.
You may come across a level that seems somehow different. This is the lair of the Cat Lord.
The Cat Lord
If you've never killed a cat, you can chat with him to get the Ring of the Master Cat, a powerful artifact. Otherwise he'll attack you. His power is relative to the number of cats you have killed.
Sharad-Waador, the Ancient Karmic Wyrm
When you talk to him, he'll give you a quest to kill his arch enemy, the Ancient Blue Wyrm (who actually is a purple "W"). You'll get a ton of mostly useless stuff, and Needle, a powerful artifact dagger.
This level is basically a long slip'n'slide. You can't walk around, but if you can find some way to propel yourself, maybe even get rid of some "useless" items...
The long adventure is almost complete. Here, you must use the Elemental Orbs at each of the appropriate altars. This will change the direction of the stairs, and allow you to reach the Chaos Gate.
This is it. The final battle. The level contains three very important objects. The Chaos Gate, and two levers. One lever will change the stairs so you can go back up, the other closes the Gate. The Gate is at the far left of the level. The levers are in secret rooms above and below it.
Fistinarius, the Greater Balor
This guy is one mean mother. If you haven't killed him and his friends before you use the levers, they'll go over and move them back.
Close the Chaos Gate and end the corruption. This will stop all corruptions, so you don't have to worry about turning into a mass of primal chaos. The stairs on the altar level will change back when you get there so you can leave the dungeon.
~ OR ~
If you have assembled the Trinity, you can attempt to become the new God of Chaos. Just wear the Trinity and step through the Gate. And prepare for the hardest battle of your life. You have to defeat Andor Drakon, the Elder Chaos God.