At the start of the game pull the lever near the staircase three times and then look around for a hidden lever. It will open a secret passage with another hidden panel with a very sharp dagger behind it. The dagger is *extremely* helpful.
[url=]http://i199.photobucket.com/albums/aa26/Slybo/dagger.jpg[/url]
EDIT:
here is a new illustration
Secret Dagger

Like i said in the other thread, this dagger really is only necessary if you find the game immensely hard, it is kind of a cheat to even pick it up after all it is the best weapon in the entire game.

I have not used it yet and I am a fair way through the game. I must admit though it is hard and I am low on health, but way too far away now to even think about turning back.

Damn - I must be really really bad at this type of game...!!
I got the dagger, using it a lot - just reached the Throggi Temple level and am starting to struggle a bit........
ho hum - might be cos it skews the player stats so you are a bit short on some....i may restart without it, just to see how it goes

i push the lever up/down 3 time's but am unable to find the secret compartment with the lever whatsoever =(

I don't think it works after you go down the stairs. You need to do this from a new game. The three sequence is 1) pull down 2) push up 3) pull down. It is not up 3 times up and down 3 times.
From facing the switch, turn left, forward, left, forward, forward, left, forward, forward, left. You should be facing the wall with the hidden brick. Click the brick to open it and pull the lever.

The second picture doesn't work for me. It says the file contains errors. I'm clicking from Firefox under Linux so maybe it's just me. However, I thought the picture in your first post was perfect.

Try it now.

The image “http://i199.photobucket.com/albums/aa26/Slybo/daggermap2.jpg” cannot be displayed, because it contains errors.

Just found myself in Windows / Firefox and tried the link again. It works fine. Nice picture. However, I couldn't post a response in Windows / Firefox because the "Post my Message" button wasn't accessable. So I go to Windows / IE to post this, but the picture don't work there either...LOL....weirdness.

Yeah, sadly this is true, and seeing how long the game actually is, I doubt I'll replay to get the Dagger anytime soon.

The Problem with the dagger is, at the end this thing sucks.
You pushed you're experience into this dagger and you're not so good in using a other meele waepon. I played the game with the dagger first and it's too damn easy. Late it's very weak weapon in my opinion.
(sorry for the bad english)

Awesome diagram, that was very helpful! :D I am going to use the secret dagger.

IIRC, later in the dwarven section, there is a stone you can beat on with every weapon indefinitely and max all of your weapon skills.