raze is correct about the armor removal trick.
when you go through this area wear the armor, complete all the quests, gain the experience, and don't bother with pickpocket ! (you're gonna get the stuff anyway) <img src="/ubbthreads/images/graemlins/biggrin.gif" alt="" />
after completing the final quest objective, simply remove the armor. you'll now be attacked by all your 'fellow' guards. kill them and collect their droppings. it's a goldmine, especially of arrows.
by going about this way you'll gain BOTH the experience of the quests AND the experience/goodies of (killing) the inhabitants. sweet.
this will also work in other acts - complete the quests, kill everyone. <img src="/ubbthreads/images/graemlins/stupid.gif" alt="" />