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HIGH HEDGE
Permidion Stark
First, I travel north and a little west. I run into some Skeletons. Keep in mind that this particular spot is a spawning ground for Skeletons. I make a point of picking up one of the Skeleton's heads when I'm done.
I continue north and a little west and run into a thief named Permidion Start, who has tentative plans to rob High Hedge. The dialogue options here don't really matter, and don't have any real consequence.
Abandoned House
Now I continue northwest. Along the way there's an abandoned house that will have a few Giant Spiders in it. Inside the house itself is a chest with a gemstone inside. When I leave the house I have to fight Giant Spiders again, as well as a few Ghouls.
I continue on until I bump the west edge of the area. Note that bumping the west edge of the High Hedge area is the only way to reveal the Shipwreck area on the world map.
Thalantyr
Now I enter the High Edge itself. I quickly speak with Thalantyr so that the Flesh Golems go from hostile to neutral (i.e. red circle to blue circle). BG1 NPC Projects has Thalantyr reward Kivan with a magical +2 spear (10% chance of Entanglement on target for 24 seconds with no saving throw).
I then speak to Thalantyr and give him the iron poison that I kept from the Nashkel Mines for 750xp.
I then speak to him again concerning Melicamp. Thalanytr will attempt a spell to return Melicamp to human form, but needs a Skeleton Head first. Note that if you don't have any, the spot I showed during the first video on this page acts as a spawning ground for Skeletons that will drop a Skeleton Head.
Now I quick-save. The reason is that there's about a 50/50 chance that Thalantyr's spell will kill Melicamp instead. When the spell does work, I get 1,000xp and +1 to reputation.
Thalantyr also sells quite a few items, include spell scrolls, protection scrolls, magic wands, magic ammunition, as well as a Horn of Kazgaroth and a Claw of Kazgaroth that each offer benefits but also detriments to any character that uses them. I also buy:
Perdue's Shortsword
Now I leave the High Hedge, and head east from the doors. I then kill off a group of Gnolls, one of which leaves behind Perdue's Short Sword. I bring it back to Perdue in the Red Sheaf Inn in Beregost for 50gp and 500xp.
Now it's time for me to head over to the Beregost Temple.