There are several named kobolds each of which drops magical items. The second section of this dungeon is known as the bug and rodent section of the dungeon. Some example of bugs are sonic bats and noxious spiders. The third section of this dungeon is the Fire Giant section. You must go past the bug section to reach this point.
Fire giants are all extremely high level.
These fire giants are instant death to all but the highest level players. It is best to bypass the giants all together. You can raise favor with the giants by killing fire goblins in Solusek A. Deep past all of the kobolds, and bugs and giants is the lair of Nagafen himself. Nagafen is the fierce red dragon shown in screenshots on Verant's website. It will take a minimum of multiple level 50 parties to tackle this beast.