Aw, how sweet of you - you remembered my problem with capital letters? Thank you <img src="/ubbthreads/images/graemlins/kissyou.gif" alt="" />

The BF traders very often say => near by, in the vicinity etc. - but quest items/monsters/enemies are always in the 3rd lvl of a dungeon entry. You can't count on finding this in your 1st dungeon - if you're unlucky, you find the solution in the 6th - but always in the 3rd lvl.
Kiya