At X: 25 Y: 84 is the local cemetery. You might find a half dug grave. No matter whether you search it or not, some grave robbers (Merdonis guards) will attack you.
At X: 27 Y: 83 are some gems.
At X: 22 Y: 81 is the local temple.
At X: 21 Y: 85 is a guard house with lots of guards.
At X: 12 Y: 84 are some guards eating.
At X: 7 Y: 79 is an old man asking for money to leave Merdonis. Give it to him, and you can rest undisturbed in his shack. Otherwise, you'll have to fight guards again.
At X: 10 Y: 83 are the castle gates. There is a lot of guards here. About a hundred. Be sure you're rested and have the strength.
From the castle gates you just have to walk to the castle, kill Loradan and his remaining guards to save Merdonis.