At around this point, your two brothers, Prince Trian and Prince Bhelen, will stop here and remind you that you're expected at the King's feast. Despite the tone of this meeting, the point of this encounter is simply to remind you of how to progress the story.
Here are a couple of merchants, like a Silk Merchant and an Armor merchant. They'll have largely mundane wares available for sale.
Here is a weapon merchant, who wants to make an honorary weapon for you. If you oblige him, he'll make a Noble's Dagger (Grey Iron).
Here are two Dwarven women, Manny and Teli. Manny in particular wants to score a male Dwarven noble in order to ascend to the Noble caste through the resulting child, who would potentially inherit the same caste as the father. You can choose to bed Manny, but due to subsequent developments will prove to be an unfortunate development for her when she becomes pregnant with your child.
At this point, you have the option of going to the Dwarven combat tournaments known as The Proving, with an armed escort to tag along at the King's insistance. Whether you simply watch the Proving that will be held in your honor, or fight in the Proving yourself (and earn xp) is entirely up to you. When you're ready, simply indicate that you're ready to head back to the palace.
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