Become A Godsman And Get The Best Axe:

Talk to the Auctioneer outside the market in the lower ward. Perform the tasks he will ask you to do. The second task will be to deliver a message to a Godsman, therefore granting you passage to the northern gate (in the lower ward). You will eventually meet a man in a room surrounded by other people. Ask him about becoming a Godsman. He will tell you to forge a weapon in the foundry, the first room you saw when you entered the place. Get the items you need from the clerk in the southwest part of the room. Ask Thildin, the muscular man, for some ore. Then, find the only empty barrel and make the weapon of your choice. Report back to the man that told you how to forge the weapon. Next, there will be a murder. You only need to know where the people are -- you already know where Thildon is; the man whose name starts with "S" is in the same room as man that told you how to forge the weapon, and the other is on the balcony just above him. Talk to Thildon one more time and report back to the man that told you how to forge the weapon. Just convince the man in the locked quarters to live. Be nice to him. You will now become a Godsman and have access to the best axe in the game for 5000 GP.