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Okay, there's the red chest nearby in that small alcove right? Standing in front of the chest facing North toward the palace, walk forward and then look to your left. There should be a lightpost there. Walk up to the lightpost, and stand to the left side of it as you approach it. Turn around and face East toward the chest, and walk forward slightly until the ! mark pops up.
I sometimes feel as though life is a curse that has been placed on the living. I envy the unborn at times.