Hum. It's the sneak past death knight that has me worried. Where is that key you spoke of - is it near a teleporter? My character has perception 10 but i honestly don't remember seeing any thing about a key (or place to dig). I do remember a locked switch that didn't work that I couldn't figure out so maybe the key is related to that ?
Look at
this map. The key is burried at (2) and the lady is at (3).