In this room you'll get assaulted by many Skeletons, as well as an Arcane Horror from the other side of the door to the South. My recommended strategy is to make as fast a run as you can for the south door. Paste the skeletons with damaging spells, while your fighters are now close enough to get at the Arcane Horror. You'll also find some Private Documents here, as well as a Scroll of Banastor that adds to your knowledge of what Blood Magic is about, and is also relevant to another quest on behalf of the Mage's Collective.
Sidequest Note: Some of the notes you get will indicate discovering how a certain ritual works, and will be collected under the Codex entry for: "Rearguard of the Watching". This is the room where you can complete the ritual and the side quest. Basically do the following:
1. Click on the statue that's holding a ball. Note that you must scroll around the base of the statue for a bit until your mouse-clicker turns into an 'eye' icon. Then you can click the statue.
2. Click on the statue that's holding a sword pointing upwards.
3. Click on the statue that's holding a sword pointing downwards.
4. Make your way to the central room at #8. You'll find a statue holding a shield. Click on the base of this statue to complete the ritual. You'll be notified that something has been released downstairs. Now go to the Apprentices' Quarters at #7, and click on the basement door. There you will have to fight a particularly powerful Rage Demon named Shah Wyrd. If Wynne and her students are still alive, they'll help you fight Shah Wyrd. Once he's defeated, he'll leave behind Yusaris and possibly another random item or two.
In this room you'll get attacked by a few Lesser Rage Demons. There is also a chest here.
In this room are a number of Abominations. Around the room you'll also find notes along the thread of "Promises of Pride" that help explain the events leading up to the current situation.
In this room you'll get attacked by a couple of Possessed Templars. One of them leaves behind a Templar Helm (Veridium). You'll find a note along the thread of "Five Pages, Four Mages" that explains some of the unwelcome aspirations that some of the Magi have had.
Here you'll find another thread along the "Five Pages, Four Mages" thread.
In this room you'll be forced to fight a Desire Demon and several Charmed Templars. Be warned, this fight can be really tough. The Desire Demon can cast spells, including Winter's Grasp. The Templars are going to whip out a Holy Smite attack at your spellcasters that can both cause damage and stun. So in a sense, you really have no choice but to let them get the first blow as soon as you open the door. So, take it, then have each party member quaff a Health Poultice. Now try to set up a crowd-control spell or two near the door. If they're stuck at the door, a Cone of Cold can catch many of them at once. The Desire Demon will leave behind Shiver.
In this room will be an especially powerful Abomination, along with several Lesser Shades. Same principle, set up a crowd control spell or two to keep as many behind the door as you can. Pack the room with damaging spells. Mop up anything that happens to make it through the door. The Abomination leaves behind the White Runestone, which Alistair will appreciate as a gift.
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"*Mercy is a shield used by the WEAK. Mercy is WEAKNESS. Mercy is DEATH. NO ONE is innocent. Mercykillers slay mercy and its WHORES wherever their plague has carried them.*" -Vhailor, Planescape: Torment