Baldur's Gate 1 - Chapter 4 Walkthrough
Chapter 4 begins immediately after looting and reading the notes in Tazok's Tent, a building in the Bandit Camp zone. You are told to proceed to Cloakwood Forest which has now been marked on your map. In order to reach this location you will first need to proceed back to Friendly Arm Inn - when you exit Friendly Arm Inn's map from the western side you will be able to enter Cloakwood Forest.
The Cloakwood is a total of 4 zones which are all connected to each other, you'll have to pass through each one and exit on a specific side of the map to proceed from zone to zone.
Cloakwood Map #1:
In this map you will find a large cabin in the center with a group of quarreling NPCs. You'll have to pick a side during this quarrel which will determine your loot. If Jaheira is in your party it's possible to reach a peaceful resolution between both parties. You will also find a potential companion named Coran to the north of the cabin on this map.
The only other noteable thing in this map is the Cloak of Non-Detection which you can find on a group of Tasloi in the southeast. You can talk to Gurke in the Jovial Juggler (Inn in Beregost) after retrieving this cloak and he'll give you 300 EXP + let you keep the cloak. When you're ready to proceed to map #2 exit to the northwest.
Side with Seniyad: Kondar (Bastard Sword +1) on Aldeth's corpse; later on in Baldur's Gate Central you'll be ambushed by Dabron, Aldeth's brother who will drop Heavy Crossbow of Accuracy.
Cloakwood Map #2:
This is one of the more difficult maps in the Cloakwood but there is some truly exceptional loot to be found here. When you first enter this map you'll meet an NPC by the name of Tiber who asks you to find his missing brother Chelak. You can find Chelak's body inside of the Spider Nest in the western portion of this area along with some really great loot.
In the southern portion of this map you will also find a rock outcropping over the water which has some more loot to be found on it (Enhanced Edition only). While exploring this Cloakwood Map I recommend you move slowly and keep an eye out for traps with your Thief (or whatever character you're using with Find Traps). To proceed to the next map you'll want to exit this one to the north.
Cloakwood Map #3:
You are able to recruit 2 new companions in this Cloakwood Map, Eldoth and Faldorn. Eldoth you will meet immediately upon arriving and it's important to note that if you plan to recruit Skie Silvershield later in the game you will need to recruit Eldoth at some point. Faldorn is a Shadow Druid who will agree to join your party if you tell her you're here to remove the Iron Throne from the area.
Laskal: Asks if you're Iron Throne if you say you are or play dumb you can fight him for a +2 Quarterstaff
Tree House: Mighty Oak +2 on Amarande and Potions in containers
Cloakwood Map #4:
The only thing of note on this map is a cave of Wyverns which you will encounter. If you recruited Coran in the first part of Cloakwood then you will be able to take one of these Wyvern Heads and give it to Mayor Ormlyr in the Temple area next to Beregost for 2000 Gold.
After finishing all 4 maps of Cloakwood you will arrive at the Cloakwood Mines which is our next big dungeon. You can find the Cloakwood Mines at the northern most portion of this map; to reach it you will need to cross a bridge in the west that leads to a small island in the middle of the map surrounded by water. On the small island before reaching the mine you will have a boss fight.
If you're not playing on Story Mode the best advice I can give you is to focus on the mages first, they will be the biggest threats in any battle. Be sure to pick up the loot after taking out these enemies as they drop one of the best items in the game - The Paws of the Cheetah! You'll also find Mage Robe of Cold Resistance, Morning Star +1, Fallorain's Plate +1 and a couple more goodies like potions and spells.
When you are ready to proceed head inside of the Cloakwood Mines. On the first floor of the mine you will want to speak with an unnamed miner in the northeast of the map standing outside a metal door. He will tell you that if you get him the key off Davaeorn (final boss in the mines) he can flood the mines for you which will prevent their use. Once we've cleared the mines we'll need to return to this location to flood them so remember this place.
2nd Floor: Hareishan (mini boss) drops Adventurer's Robe. On this floor you will also meet 2 important NPCs in the Prison area. Rill is the first, he is the leader of the miners and he asks you for 100gp to bribe the guards which you should definitely give to him. If you help him escape you'll get more EXP and +2 Reputation instead of -2 when you flood the mines. Yeslick is the other person you can talk to here who is a Dwarf Fighter/Cleric that offers to join your party.
3rd Floor: Many magical arrows can be found on this floor as well as random potions. In the Armory (northeast most room) you'll find Small Shield +1 and Studded Leather Armor +1. The southeastern most room has an invisible Ogre Mage inside that will drop a Katana +1 for you as well. For the most part each of the barracks have nothing inside the chests, a Spear +1 is the best loot you will find in them.
4th Floor: Davaeorn is found on this floor who is the final boss of the mines. He drops Bracers of Defense AC 6, Robe of the Evil Archmagi, Traveler's Robe, scrolls, letters and a plug key. You will need to loot the letters from his corpse and read them to complete Chapter 4. The plug key that you need to flood the mine is also on his body - make sure to loot that too as it's an easy 2000 EXP.
Throughout the 4th floor you will find various potions and scrolls hidden throughout. If you want to collect everything hold down the TAB button to highlight all the containers. Behind Davaeorn's room you will find a lift that will take you back to the 1st floor of the mine. Speak with the miner in the northeast now that you have the plug key and you'll flood the mines earning yourself some EXP and Reputation. If you helped Gill earlier by giving him 100gp you'll get 2000 EXP and +2 Reputation. If you did not help Gill then you'll get 900 EXP and -2 Reputation (since everyone will have drowned).