When you first enter here, notice that there are two 'x's, one north and one south. Walk close up to the either wall, click on the wall, and you'll discover that they're secret doors. Opening one causes the other to open as well. Skeletons from both secret rooms will attack you. The chest in the south room will have a Love Letter as well as another random item in it.
Here is a door to the Werewolf Lair. Unfortunately it is barred from the other side, so you'll have to find the long way around.
Here you'll get attacked by a couple of Werewolves. Lying around will be a few miscellaneous items.
Here you'll get attacked by several Spiders.
Here you'll find a number of corpses and cocoons that hold random items.
Here you'll also find a number of corpses and cocoons that random items.
There are a few traps here, so try to disarm as many as you can before they become a liability during an upcoming fight.
Here you'll have to fight a smaller female Dragon. Be warned, despite the smaller size, this Dragon can still be a formidable opponent for lower level parties. Its roar can temporarily stun party members, it can breathe fire, and its Overwhelm attack can easily kill a single party member (depending on your level when you happen to get here). The most reliable strategy is to try and hold it in place with immobilizing spells (e.g. Cone of Cold, Winter's Grasp, Paralyze, Spirit Prison, etc.) and pound away. In fact, you may want to hold such a spell in reserve for when you notice that the Dragon is about to charge a party member with its Overwhelm attack. Once you've killed it, a number of corpses can be looted for random items.
Here is the Dragon's Hoard, which contains a fair amount of treasure, including various high-grade potions and salves, gold coin, gemstones, Silver Medallion, and Falon'Din's Reach (Dragonhorn).
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