Behind the waterfall
I've been hunting fire giants for the last few days. They occupy two parts of the dungeon behind the waterfall east of the Gnome Stronghold. They are rumored to carry dragon spears and medium helmets, but all giants that I have "interrogated" until now know nothing about dragon items. Some giants carry rune items, but most only have a few herbs or coins on them. On the bright side; I have been able to practice my ranging skills using my bow and arrows :-)