I'm still in the prison area where the game starts. I made it to the room with the talking skull. I went next door and killed the bad guy and his imp. The bad guy dropped a key. I assumed this key was to the door on the far east, but i still cant open that door.
Soooo....... now I'm stuck. I even restored a game and went back and killed him again and took that key and tried again just to make sure it wasn't some strange glitch.
I looked at a walkthru (a poorly written one) which seemed to indicate that the key was to the door at the east (it actually said west, but there is no door to the west so I assume the author just doesn't know his west from his east).