2)
This hallway leads to some rooms. Contained in one of this is the dwarf who slayed the young boy from the Graveyard District, whose ghost asks you to return his teddy bear to him.Also near here, you can hire a young slave from the madam to "entertain" you for the night. My party members shocked when I hired the girl, but assumed I was doing it simply to attain information from the girl. Interestingly, in the sake of curiosity, I went through with the "entertainment" and immediately went back to the Madam, re-hired the girl and went for the information. It didn't seem to affect my romance plot yet (just a tip for all you playboys out there). Additionally, you can find a man named Yarin in one of the other rooms. He isn't of any real significance, but if you scour his room, you can find yourself some Gloves of Pick Pocketing.

3)
This is the exit to the Slaver Compound.

4)
This is "restricted area" and by forcing your way in here, you cause a battle with the Coronet guards. After defeating them a gladiator locked in the middle cell, Hendak, will implore you to help release them. If you agree, he will direct you to 5)

5)
You need to get the cell key from the beastmaster at the back of this room. He won't give it up peacefully, so you have to tackle his buddies and then kill him off. Grab the key, return to 4) and release the prisoners. One thing about having slaves trained in combat...if they get free, they're not going to be very nice. The gladiators swarm the place killing off any remaining guards and when you return to 1) you witness a battle between Hendak and the owner. After Hendak has his justice, he takes over the Coronet and offers you a discount for your services as well as the experience reward. He also asks you to finish off the slavers that remain. Access teh slaver compound at 3).

a)
This is where you meet Korgan for the first time. If you ask him to join your party, he will ask you to help him with a Quest.