Many thanks for all you help Raze, it was most gratefully received. By the way, you know of the cellar full of tough bugs - well I used the Poymorph spell on them, then wnet after the creatures (they were then all rabbits and frogs) with a Bastard Sword. I still got the armour upgrade as well.
By the way, I've found that often when you are in a really tight corner, that polymorph spell really helps. There's only one quest remaining before I enter Stormfist Castle, that's the Sword in the Stone at the Elven Ruins, and this Easteregg gave me a few pointers on how to complete that!
As you see, it's not always pointless to ask a question - in fact, one of my mottoes is "If in doubt - Shout" or in other words, if you;re stuck ask someone who may be able to help.