Here is the stairs back down to the basement at #4.
There's a lot of corpses and a few Shades in this room. Take the initiative by opening the door and planting area-of-effect or storm spells in the room. Let them come out and come for you after taking damage. Inside the room itself is a book that yields a Codex entry for History of the Chantry: Chapter 2.
In this room is several chests, weapon stands, and armor stands that will have several random items.
Here are more undead for you to fight. In these kinds of battles, a commendable strategy is to use a doorway as a choke point where you can plent crowd-control spells (e.g. Glyph of Repulsion, Earthquake) and then shower the room with area-of-effect or storm spells. Then let them come to you singly or a few at a time.
Here you'll have to fight a large pack of Mabari Hounds. You need something in the way of close-quarter crowd control abilities like Waking Nightmare, Captivating Song, Mind Blast, and so on. One of the hounds leaves behind a Black Leather Collar. A nearby chest holds a Lamb Bone, a Kaddis of Hakkon Wintersbreath, and Warpaint of the Tempest.
In this room is a couple of cabinets with random items.
In this room is an armoire with a random item.
Here is the Smith's daughter, Valena. If Owen has you a quest to look for her, telling her to get back through the way that you've cleared out should be sufficient to complete the quest. Then make your way back to Owen for your reward. A nearby chest has a random item.
However, if you are feeling tempted, you can choose to avoid Valena completely with a different reward. If you confront Connor without ever having encountered Valena previously, Valena will be deemed missing and dead. When you bring the bad news back to Owen, he'll end up hanging himself afterward. When you come back to Redcliffe Village - Post Battle, it will be a different blacksmith instead of Owen. There are two perks to this. One is that you can Persuade (Lie) to the new Blacksmith and claim that you were a relative of Owen's. This will result in the blacksmith giving you the Faulty Amulet. Second, the new blacksmith will have the Far Song (Dragonthorn) in his inventory, which is easily the best bow in the game. I personally didn't go this route when I was a good guy, because I wanted to rescue Valena and there's still decent enough bows out there. It's up to you.
Here are more undead to fight. Again, set up crowd-control at the choke point and then fire away. If you left the villagers to their fate, the corpses of Bella and Lloyd will also join the fight.
Here are more undead to fight. If you left the villagers to their fate, Ser Perth will be here to fight against you as well.
When you stride into this hall, it becomes apparent that Connor Guerrin is possessed by a Demon from the Fade. Connor uses his powers to oblige the nearby guards and Bann Teagan to attack you. Once the fight is finished, both Bann Teagan and Isolde want to find a solution, preferably without killing Connor. If you opened the gate in the Courtyard outside, Ser Perth will help you in this fight if you told him to help you.
One potential solution is to kill Connor himself, but this earns a lot of disapproval with Alistair. It also involves pursuing Connor to his bedroom on the upper floor.
Another solution is to have Bann Teagan fetch Jowan from the Dungeon. Jowan can cast a Blood Magic ritual that will send a Mage into the Fade to pursue the Demon possessing Connor. The problem is that this requires somebody to sacrifice all of his or her life force. As it turns out, Isolde is the willing volunteer.
If you do select an option involving going into the Fade, keep in mind that only a mage can enter the Fade. Your Grey Warden character can if he or she is a mage. Alternatively, Morrigan or Wynne can enter the Fade. Also, if you seek the help of the Circle, First Enhanter Irving or Jowan can enter the Fade. One more thing to keep in mind is that if you want to unlock the Blood Mage specialization, the only way to do it is to have your Grey Warden character as a mage enter the Fade and barter a deal with the Demon. In any event, pursuing the Demon will lead the chosen character into The Fade.
Here you'll find a number of containers with random items. One of them has a Small Silver Ring.
A desk in this room has Alistair's Mother's Amulet, which Alistair will appreciate as a gift. It also has a book on it that provides a Codex entry for "The Orlesian Empire".
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