Those of you who are playing this game via Steam (as an add-on to Might & Magic 10) should be aware of a bug I encountered yesterday. (Steam is notorious for changing old games so that they're not EXACTLY like the originals.) One of the first quests you receive in New Sorpigal is to find a code scroll for entering the dungeons in Goblinwatch. You can complete this easily enough, because as the comments say, you don't have to clear out the dungeons.
However: After you return to the town clerk with the code scroll and receive your reward, she informs you that you may keep the scroll, and keep any treasure you find in the caverns below the castle. Since you still have the scroll, you can read it and open the gates to the underground. So you go back to Goblinwatch, and enter the room containing the code pedestal, fighting off rats and goblins as you go. You carefully read the scroll, and note that one key ("G") is said to open the last gate, without closing the others. Obviously then, this key should be pressed last. You can either fiddle around by trial and error, work out by reading the scroll which keys to push, or cheat and just spell out the letters in "goblin" backwards. (The scroll was written by the Drawkcab Monks, after all.) Unfortunately, when you press "G," nothing happens. I remember there is a stage-like room beyond the gates, full of more goblins, bats, and spiders, and some treasure. A passage at the rear leads to another passage, which is the way to the treasure chests in two other caverns, one huge, the other consisting of several small, interconnected rooms. At this time, you must press on, as there is now only one way out.
You can enter the huge, main cavern and the other rooms though, forfeiting a few battles and a couple of smallish chests. You will have to press the "M" (for "Maintenance") key, which drops you into the main cavern, past the stage-like area. Hope this helps!
P. S. I'll keep a watch out and report any other glitches I run across.