Upon first entering Angel's Rest from the west, the first place to go is the house in the southwest corner of town. The bedroom here contains a few Troglodytes, and there's some scrolls and a research tome on the bookshelves.
While wandering around this town keep an eye out for Shahpur, an Empire War Priestess. She'll give you a quest to meet Empress Prazac. If you wait too long and Angel's Rest is destroyed I've heard that you can find her in either Aminro or Shamirik.
Head over to the East Gate now, and go into the shop just south of the gate. This is Merry's shop. Just north of the gate is a guardhouse, and north of that is a Common Weaponsmith. North of the Weaponsmith is a Common Armorsmith.
Now head over to the North Gate, and enter the inn just to the west of the gate. Sitting at one of the tables is Masok, who has a map for the Black Halberd location. Buy his map, because the Black Halberd is one of, if not the best pole weapon in the game.
The inn is run by Adrianne, and if you buy a couple rounds of mead from her she'll talk to you about some soldiers who passed through saying that they'd seen dragons flying around.
