"Why must Carl keep that key up on a beam? I can never reach it! Wait a minute… Maybe that's why!"
Originally, mindreading her spawned the key to Carl's basement, however as of the latest version of Dragon Knight Saga, the key is present without having to mindread Dana.
In the basement there is one lockpickable chest and a secret button on the left side of the wall with the giant cobweb that lowers a secret Unique level 7 one-handed axe called Jackson's Cleaver (see Carl's House).
Dana was among the few Broken Valley residents lucky enough to have escaped Damian's siege of the valley by travelling to Aleroth. However, she, Derk, Folo were all murdered at Madame Eve's brothel, by what is revealed to be a rare natural undead during the quest Murders in the Rue Lanilor. The murderer later returns to take the victims' corpses underground to the Eerie Undercroft, where they are used for an invincibility spell. The Dragon Knight rouses Dana and the other victims as zombies so that they may be slayed again to break the spell, allowing Zombie Jake to be killed.