It isn't glitch, it is just secret dungeon, which doesn't have anything that special. You get legit way of getting practically unlimited food when you learn "Create Food" spell and get high enough skill level in Light Magic.
What concerns Hall of the Fire Lord, that was indeed bug, but it was fixed in later patches (included in GOG version) together with other good bad bugs (like training all skills on all classes., e.g. getting Plate skill for Sorcerers), unintended experience caps and general instability of the game when your characters have high stats.
Oh there was bug with original version, where you could get as much as 2 billions gold by repeatedly opening Obelisks' chest. Now, that was the bug :) Being another good bad bug, probably these are not bugs and they were in game for a purpose like secret features to get enormous amounts of EXP and Gold, MM 7 had nothing like this, but MM 7 has Well of Wishes, which gives gold, exp and skill points in unlimited amounts.
Post edited December 08, 2013 by Sarisio