Went to the prison. Found some runes inscribed on the foundation and smeared with something. Copied the runes (in Varisian, part of a larger ritual, Abjuration and Necromancy magics, no active magic detected).
Fought a haunted scythe. Set some rats on fire.
Went back to town, talked to some folks.
Went back to the prison at night. Woooo, spooky.
Found a locked metal door.
Found a cold spot, ran through it.
Found a room with a pit, fought some Flaming Skulls.
Ended in the pit room, positions noted on a rather awesome map.
GM Note: yeah yeah, both Dishonored and the new class DLC for Borderlands 2 came out this week…