[Note: The portal to the dungeon is restricted to characters of level 60 or greater. Lockpick skill must be used to combine some items to create the key to the final area. Unknown if key creation is required to spawn the final monster. -- Ed.]

Stonehold

Travel to Stonehold and, near the Foundry statue, talk to Cyphis Suldow.

Cyphis Suldow tells you, "Greetings! I'm Cyphis Suldow and you are? Nevermind, who you are is unimportant. The important thing is I need some help and you seem to be more than qualified to do so."
Cyphis Suldow tells you, "I want to build a resort for the weary adventurer and I found the perfect spot just to the east of here."
Cyphis Suldow tells you, "The only problem is that some banderlings have a village there. That is where you come in my friend. Go and...relocate those banderling."
Cyphis Suldow tells you, "Come back when the job is done. I'll give you a nice reward, but I'll need proof that the banderlings won't come back."

Well, if you search "just to the east" you'll waste a lot of time. If you question Cyphis, he says:

Cyphis Suldow tells you, "You're back. Any luck getting those banderlings to relocate their village?"
Cyphis Suldow tells you, "No? Well hurry up then. If you don't do it I'll hire someone else who is more persuasive."
Cyphis Suldow tells you, "Remember, the banderling village is east of here. I don't care how you do it, but get those banderlings to leave."

Cyphis Suldow's idea of "just to east of here" is fascinating. It's a good thing that there are plenty of adventurers out there -- Stonehold is located at (68.8N, 21.6W); his banderling village is at (72.8N, 6.8W)! Hardly a short walk.

One straightforward route to the Banderling Village is: From Crater Village take the Anadil Cottages portal at (66.3N, 14.3E). It deposits you a short run from the Banderling Village.

The Village

The village is inhabited by Level 95 Banderling Chanters, Level 100 Amethyst Gromnies, and one Level 95 Banderling Spirit Seeker. Kill the Spirit Seeker and loot the Carved Figure from his corpse. Use the Carved Figure on the Statue to summon a gateway (restricted to characters of Level 60 or greater). There appears to be no timer on either the Carved Figure or on summoning the portal.

The Banderling Shrine

Inside, you must find the Banderling Spirit Seekers and loot three items from their corpses.

First, follow the left wall until you come to a small cavern. Kill the Spirit Seeker and loot the Ring of Vines.

Next, return to the entrance area, and this time follow the right wall. You will eventually come to a large, wide cavern that leads downward. Kill the Spirit Seeker and loot the Stone Emblem (looks like a bandy head). Use the Ring of Vines on the Stone Emblem to get a Ringed Emblem. (This requires Lockpick skill.)

Continue downward, through the passage and cross the bridge over the magma pit. Proceed, hugging the right wall. You will start to encounter Ruby Gromnies here. Encounter the third Spirit Seeker, and loot the Murky Gem. Combine the Murky Gem with the Ringed Emblem to get a Banderling Holy Symbol. (Lockpick skill needed again.)

Continue past the exit portal and down a short ramp to the Shrine Door. It requires the Hold Symbol to unlock it. Do so, and continue into the shrine area, a raised rock area surrounded by magma. There you see a Banderling Idol. When you double-click on the Idol it spawns a Level 100 Banderling Ancient Spirit and two Ruby Gromnies. Kill the Spirit and retrieve the Oily Stone.

A dark stone. Although not exactly wet, it feels oily. You feel an evil aura emanating from the stone.

Return to Stonehold

Return to Stonehold, and give the Stone to Cyphis Suldow.

You give Cyphis Suldow Oily Stone.
Cyphis Suldow tells you, "Those heathens were worshipping some kind of spirit, huh? I guess with you killing their 'god' they won't be coming back."
Cyphis Suldow tells you, "Good job! Here's a little something for your troubles."
You've earned 360,000 experience.
Cyphis Suldow gives you Cyphis Suldow's Half Moon Spear.
Cyphis Suldow tells you, "Hey! Wait a minute. I can't drop this stone..."

For the fun of it, ask Cyphis how things are going with his resort.

Cyphis Suldow tells you, "Thanks for your help in clearing away those bothersome banderlings. Now I can starting building my resort."
Cyphis Suldow tells you, "Hmm...for the life of me I still can't drop that Oily Stone you gave me."

DUNGEON NAME	MAP	RESTRICTIONS
Banderling Village		Level 60+