1 - Dolan's General Store Edit
The proprietor is Charles Dolan. If you've been doing quests for Jongle Dunne in Shrouded Hills, then you'll need to pick up a package from Dolan. Otherwise, he'll operate just like a normal general store shopkeeper.
2 - Lianna Pel Dar's House Edit
Lianna will tell you a few things about Dernholm and Cumbria, including that King Praetor wasn't the firstborn son of the previous king. She'll also talk about her father, Warren Pel Dar, who was the Captain of the Dragon Knights, and who died ten years ago.
Later you'll find Maximillian, the firstborn son of the previous king, on the Isle of Despair. Maximillian will request you get in contact with Lianna. When you tell Lianna about Maximillian, you'll receive 1500 experience and some alignment.
Also note that Lianna's weapon is the Sword of Baltar. It's good enough (15-25 HD, 5-15 FT) to use a fate point to steal it.
3 - Newspaper Edit
4 - Rupert's House of Well-Worn Effects Edit
Rupert is a junk dealer.
5 - Jayna Styles' House Edit
Jayna is a technological healer. If you have a positive technological aptitude, you can get her to join you (ask her how her studies are going). Jayna will earn degrees from the herbology and therapeutics disciplines. You can loot the chest in the house without Jayna minding.
6 - King's Inn and Pub Edit
Outside the inn, as you approach the door, a halfling will grab you and ask for a donation. If you give him 10 coins you'll gain a point of alignment.
Inside, the conversations from most patrons are decided when you talk to them, and so if you save first you might be able to get a donation or win a bet. You can also talk to a gnome named Vollinger next to the bar. He'll offer to join your party, but Virgil will warn you against it. Virgil's right -- Vollinger will eventually turn against you -- but until then he'll act as a gunslinger and learn schematics from the gun smithy and chemistry disciplines.
7 - Sarah Toone's House Edit
If you've talked to Percival Toone in Shrouded Hills, then you'll recognize Sarah as Percival's sister and Bessie Toone's daughter. Sarah will tell you about the silver mine, how Percival sold it and how Bessie killed herself because she only wanted it to be run by Toones. Further, she'll tell you that Stanton Importers at 25 Lion's Head Circle in Tarant bought the mine, and she'll ask you to return the deed to her.
If you decide to help Sarah rather than Percival, you'll receive 4500 experience, a filament sword and a big boost to your alignment when you return the deed to her. If you help Percival instead, you'll receive 1700 experience and 500 gold. Once the mine is owned by a Toone again, Bessie will stop haunting it, and you'll find pure ore inside.
8 - Wallow's Quality Armor Edit
9 - Gladys' House Edit
Gladys will tell you that a family heirloom -- a silver ring that belonged to her grandmother -- is missing, and she'll suggest you talk to Archibald at the docks (#10) for more information about it. Archibald will admit to having the ring but refuse to give it to you. Further, he'll threaten to have his son Bernard thrash you. So go outside and talk to Bernard (#11). He'll tell you the history of the ring, and how Gladys and Archibald have been using it to "communicate" with one another. Go back to Archibald and tell him you think Gladys is attracted to him, and he'll give you the ring. Then when you return it to Gladys you'll receive 1600 experience and a boost to your alignment.
If instead of talking to Archibald and Bernard you killed Archibald for the ring, you can still complete the quest. However, you'll have to tell Gladys that Archibald gave you the ring. Then you'll receive 800 experience and some alignment.
10 - Archibald's House Edit
11 - Bernard Edit
12 - Barracks Edit
13 - Sir Garrick Stout, Captain of the Guard Edit
He's the Melee Master.
14 - Palace Edit
Inside you can talk to King Praetor. He'll ask you to collect taxes from Black Root, and he'll mark Black Root on your world map. Once you pick up the taxes from Black Root and return them to the king, you'll receive 800 experience and 200 (or 275) gold.
You can also ask King Praetor for a second job. If he finds you trustworthy, he'll tell you that his daughter Aria has taken up with Auguste Farad, prince of Arland, and is probably with him in Caladon. Then he'll ask you to check up on her, and he'll suggest you talk to a dockhand to learn about the ship she took.
So go to Bernard (#11) and ask him about the princess. He'll tell you that the ship sailed during awful weather, and that it is late in returning. Further, if you talk to Prince Farad in Caladon you'll find out that Aria isn't there, either. However, the prince will mention that the ship was supposed to have sailed past Razors Pointe.
At Razors Pointe you'll find, probably without surprise, a shipwreck and the body of Princess Aria. Check the princess' body to find an amulet given to her by Prince Farad. Even if you haven't gotten a quest to find Aria, discovering her body will trigger the quest for you, allowing you to earn the rewards.
When you return to King Praetor to tell him the news, you'll receive 800 experience and 250 gold, plus a lot of alignment if you tell him the truth. If you lie to him and say Prince Farad killed Aria, then Praetor will offer you 500 coins to kill the prince. However, this option appears to be broken. If you kill the prince, Praetor won't acknowledge the event or give you the reward.
You can also tell Prince Farad the bad news, and he'll give you 1000 gold, plus perhaps 300 more if you're greedy.
15 - The Pit Edit
If you've received a quest to find Tollo Underhill in the dungeon beneath Dernholm, then aggravating the guards next to the pit will get you thrown in. Otherwise the guards will threaten to throw you in but not do anything. You can also get into the dungeon through Exit B. Once you get into the pit you'll find a door leading into the dungeon.
A. Exit to the world map.
B. Stairs down to the Dernholm dungeon (to the northwest). If you have trouble locating the stairs, start at the statue near the entrance to the town, hold down the left and up arrow keys, and keep clicking the upper left corner of your screen. You should find the stairs next to a tree.