The whole of the north looks to be in flames, and yet here I sit aboard this wretched ship. She is aptly named, this Wicked Wench. The voyage from Luskan has not been pleasant, and my dwarven bones long for the feel of solid earth and stone again. My beloved Halgren paces the deck, anxious to test his blade, and the others of our motley band are equally restless. We have seen naught but war upon the passing shores, and I can scarce think for the call of my blade.
The docks of Targos are in view now, and Bastinados' keen eyesight brings me good cheer, for goblins line the shores below the cliffs. By Tempus, my axe will see good use this day.
Alia Shield-Maiden, the Annals of Halgren
The prologue opens with the party preparing to disembark from the Wicked Wench. As soon as the game starts, Captain Hedron Kerdos gives you some basic information about Targos, including where you can find Lord Ulbrec the town leader. He may also give you a warning to stay clear of his mother - a crazy woman surrounded by a horde of cats. Once the dialogue is complete, make your way along the dock towards Targos.
At the end of the dock you'll find two soldiers, Reig Redwaters and Honest John. Ominously, the soldiers are standing over the corpse of a fallen comrade. Before you reach the end of the dock, Reig will start a dialogue. You quickly find out that the Targos Docks have been attacked by goblins, and the town guards have their hands full. Although reluctant at first, Reig will accept your help with the goblins, and point out the location of a small goblin band to the north-east. He suggests you arm yourselves by looting the bodies of fallen raiders. Unless you have below average charisma (less than 10), he'll also give you his own short sword. Reig has apparently wounded his arm in a recent fight, and if you ask him about it, he'll give you a quest to bring him a healing draught from the Harbour Master, Magdar. You'll find Magdar in the large warehouse to the north. If the character speaking to Reig is a healer, he/she can offer to tend his wounds: you'll get some experience points for this. You can still complete the quest to find Magdar and bring back a healing potion. For characters who have a way with words, if you ask about where you can get some armour, Reig will give you his leather armour. You can also ask for his fallen comrade's equipment and will get it if you're tactful about it. When you have finished talking to Reig, speak with Honest John - you might be able to talk him into handing over his equipment as well.
Once you have finished with Reig, follow the shore north to the next set of docks. Here, you'll find a man named Brogan standing in front of a building on the docks. Brogan tells you that there is a band of goblins inside, and asks you to find the Iron Collar mercenary band. According to Brogan, they were hired by Lord Ulbrec to help with the goblins, but he knows they're still drinking at the Salty Dog tavern. Brogan will ask you to go and find the Iron Collar band and get them to come to the warehouse. If you want, you can try to convince him to let you deal with the goblins straight away, although it's recommended that you try to locate the Iron Collar band first. If you do convince him, skip on ahead to the description of the warehouse. If you accept Brogan's quest to find the Iron Collar band, make sure you speak to them before you clear out the warehouse. Once you clear out the warehouse or agree to do so, that dialogue option disappears.
Before heading down to the Salty Dog, walk just to the west of Brogan where you'll find a very large warehouse. The door is locked, but it can be easily picked or broken down. Inside you'll find Magdar Shenlen, the Harbour Master. Tell him about Reig, and he'll give you permission to ransack the warehouse for whatever you need - including healing potions. Magdar leaves as soon as he's done talking to you. Once he's out the door, a band of goblins will appear. Deal with the goblins, and then go bash some kegs! About every keg in 3 should yield something useful - any items you don't use you can sell later on. There are a few other containers in the warehouse as well. You will also find the healing potions. When you've cleared out all of the containers, head back to Reig and give him a healing potion.
West of Reig is a small house with a couple of goblins inside. After you take care of the goblins, look around for a chest. It will be locked, but you can easily pick the lock or bash it in. With the house empty, go back outside and head south. Directly below you is a ship in dry-dock. Just beyond the ship you'll encounter a dwarf named Jorun Tamewater. He's a little gruff, unless you're a dwarf. If you're a drow or duergar he'll threaten you, but eventually accepts that you're here to help. Jorun tells you that he killed some goblins who were trying to set fire to his ship (their bodies are still on the ground and you can loot them for some minor items). If you keep talking to him, Jorun tells you that you can go rest in his house to the south west. He also tells you about a trapped chest in his house. The chest contains some equipment of his, and he's willing to let you have it, but he doesn' t have time to go unlock it for you. If you can unlock the chest, or bash it in, the equipment is all yours, including a potion of protection from evil. Jorun will probably give you one other piece of advice to help you out: if you're having trouble with any goblins outside in the docks area, try leading them his way so he can give you a hand with them.
Jorun might also mention that some of the goblins were carrying pick-axes. He thinks it's a little odd that the goblins didn't come over the walls, and he thinks they might have come up through some old smuggler's caves that run under the north east section of the Docks.
Just west of where Jorun is standing is the Salty Dog tavern, where you'll find the Iron Collar mercenary band. The first person you run into when you go inside is Guthewulfe Henghelm. He's a trader and by this point you should have a few goodies to sell. You can also stock up on more useful weapons than just short swords and axes. Your attention will be drawn to a 'wolf charm' worn about Guthewulfe's neck. If you ask about it, he'll try to talk you into having a drinking game with him (the drink is hideous stuff called "braehg"). It is very hard to beat Guthewulfe at the game! And he won't play with a dwarf. To even have a chance at winning, you'll need a very high Constitution (at least a 16). If you do manage to win, you get the charm (Howling Wolf Charm). If you really want the charm, but don't have the Constitution, you can also try pick-pocketing him for it. You'll probably need to make several successful attempts to get the charm though, and if he notices you trying to steal from him everyone in the bar turns hostile, so be careful! If you manage to get the charm, you can sell it back to him for 450 gp, even if you stole it from him.
When you're finished with the trader, go over to the Iron Collar band: Black Geoffrey, Kickshaw and Blanchard Pike. Speak to Black Geoffrey, their self-appointed leader. No matter what you say, they won't leave the tavern. If you're short with them, that's pretty much all you find out. If you try to be a little more diplomatic, they'll tell you a little bit about two other members of their band: Phaen, and Koluhm. Phaen joined up with them in Luskan, and is supposed to be staying some where in Targos above the cliffs. Koluhm has long been a member and, according to them, is staying at the Weeping Widow, also in Targos proper.
Once you've finished in the Salty Dog, head to the building directly south of you. Inside, you'll find a few goblins, an old woman and about a dozen cats. Once you've taken care of the goblins, go talk to the woman in the corner. She doesn't seem very pleased that you saved her from the goblins, and is even less pleased to have you in her house. Be sure to mention that you just got off the Wicked Wench because, if you haven't guessed already, this is Captain Hedron's mother, Firtha Kerdos. She hints about some information she might have, but won't talk to you until you've taken care of all the goblins in the Docks. You may catch some references to her 'dreams' and 'visions'. If she does mention this, and a barbarian or bard is talking to her, they can offer some insight into 'second sight', and can suggest that she may have some barbarian blood in her (strangely, this is probably the only thing that Firtha won't take offense to). She might also ask you to tell Hedron that she's okay.
Go back outside and then head east along the shore. You'll find a group of goblins near an old lighthouse. Finish off the goblins, and then head back north along the shore to Brogan. If you haven't already, explore all of the docks. There should be one more group of goblins. You'll also meet a man named Crandall, who doesn't have much to say but can give you a little more information about Targos.
When you speak to Firtha Kerdos after all the goblins are gone, she'll give you a little more information about Targos. (You'll also want to speak with her if you told Hedron she was okay, or if Hedron asked you to check on her for him.) Firtha also has some insights about the goblin raiders. She apparently has been having 'visions' in her dreams, and warns that there is till more danger coming to the north, and to Targos in particular. You can also spend some time talking to her about previous events in the Dale (she'll give you a re-cap of the events from the first IWD game). Lastly, if you're still interested in learning more about the history of Icewind Dale, she'll tell you to speak with Elytharra at the Town Hall in Targos above the cliffs.
If you spoke with Firtha Hedron, be sure to stop back at the Wicked Wench and let Hedron know that his mother is safe. If you haven't spoken to her already, go and tell Hedron that the Targos Docks are under attack. He'll ask you to check on his mother for him. If you do this and return to Hedron, he'll give you some gold or a gem. Non-lawful characters only have negative things to say about Firtha, but a lawfuly aligned character (good or evil doesn't matter) has some nice things to say. A monk or paladin will refuse the reward, so be careful about who talks to Hedron.
When you get back to Brogan, tell him that you spoke to the Iron Collar band and that they aren't coming. You can then convince Brogan to let you handle the goblins. The warehouse is locked, and you can either pick the lock or bash open the door. Finish off the goblins inside, checking the barrels and chests as you go. You'll find the body of a dead cat, which you should hang on to for a minor quest a little later on. Look for a trap door at the back of the warehouse. This will take you to the old smugglers' caves under Targos.
When you come back from the tunnels, go and speak to Brogan for some quest points. Tell Brogan about the tunnels you found, and show him the charred scroll. He'll tell you to go find Lord Ulbrec in the main part of Targos above the cliffs. He'll also suggest speaking to Ulbrec's wife, Elytharra, about the scroll.
You can go back and speak to Firtha Kerdos now, or you can go straight to Targos above the cliffs. It doesn't really matter which you choose because you'll be coming back down to the Docks a few more times. (Don't worry, for the duration of the prologue you can always come back).