This video shows how the Quest is done. Keep in mind that you need 1000 gp for the test for the Key 3142!
Required Equipment
Rope
1,000 gp to buy Key 3142 from Skjaar
Method
You will need to find Skjaar below Mt Sternum. You will need to pay him 1,000 gp and take his quiz. Before trying the quiz to buy the key check if the door to the chest room is unlocked! You may waste 1k if it is unlocked.
Skjaar will only let you past the door if you prove to him that you have known his master, Dago.
The answers to his questions are "redips", "7", and "black" respectively.
After passing the quiz, go through the Level 35 Gate of Expertise and then use Key 3142 to enter the crypt.
Kill the 4 Ghouls and open the southern chests to get the loot.
Note: North of the quest chests there's another chest, on top of a fire. This chest contains a Short Sword, 8 Poison Arrows, 34 gp and a White Pearl. This is a daily respawn.
