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The Red Hammer Tribe is a large colony of goblin huts, ballistas, flying enemies, and one large flying goblin. Destroying the structures with the blue barrier-like stuff surrounding them will disable the anti-dragon shields (in the Dragon Knight Saga, there are no anti-dragon shields). There is an entrance to a cave there where you can find Groth the beholder behind a locked door who gives you the quest Much Ado About Goblins, and where you will also find Svadilfari for the quest A Shaman's Ransom given by Aurelius.

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