1) +20 health points; sell it
2) in the cellar of the doctor's house in Verdistis. there is a hatch under one of the beds
3) south east corner of the Dark Forest.
4) the name <img src="/ubbthreads/images/graemlins/winkwink.gif" alt="" />
5) not that I know of
6) possibly by tossing a teleporter onto the mountain, but there are no stairs, etc. up
7) You can't get into the cellars from the castle; not sure how the dead guards stop you - they must be very dedicated to their job. <img src="/ubbthreads/images/graemlins/biggrin.gif" alt="" />
8) One of the Larians posted the easter egg procedure, there is no description in the game itself.
