You're now in a room filled with Daemons, where a force field blocks the middle of the room (dispell it). Take the ladder Down at the other end of the room to Level 4. Climb Down again to Level 5. Go West THREE times from the ladder, then due South and take the ladder Down to Level 6. Go West ONCE and search for the pit trap (in the middle of an intersection). Find it, step on the spot where it is and go North to take the ladder Down to Level 7.
Go West into the room and exit it to the North. Go North to the wall, East ONCE, North TWICE to a ladder Down to Level 8. Go South FOUR times from the ladder to the intersection, move East TWICE, then face South. Go South through two rooms (behind some pillars in here are some Dragons, which can be killed - but you can't get their treasure; also watch for a trip that releases some monsters).
Now enter the next room South to the room with 5 Black Squares in a wall (in the middle of the room) and a ladder Down on the other side. Take a Torch in the upper right-hand corner, walk into the space formerly occupied by the torch and push on the East wall there. (On the way out, however, push the WEST wall in the LOWER LEFT-HAND CORNER!). This allows you to access the first block, where you'll defeat a monster. Push on the West wall there to open a block to the East. Defeat the monster, enter the block he occupied and push the East wall. That opens a wall to your West, where you enter another block with a monster. Kill him, enter his space and push the West wall. That exposes the block furthest to the East and releases the Dragon. (Try to use Morningstars or spells on him before you release him).
Go all the way Down to the space he occupied and push the East wall. That releases the other Dragon. Kill him, then go East ONCE from the space he occupied and push the South wall to open a wall so you can access the ladder Down on the other side (but on the way out, push NORTH, not SOUTH!). Take the ladder to the Underworld. (On the way back out, push on the WEST wall in the LOWER LEFT-HAND corner to open the wall. Then follow the previous directions, except in the previously noted exceptions).
In the Underworld: You begin at (5) on the provided map). Go Southwest over lots of mountaintops until you reach some large caves. Then head Southwest to a major intersection, where you turn Northwest and go Northeast at the branch. Go North a long way, until the path switches West, through some rocky hills to the Southwest and finally you will come to a lake. Look for the river that flows South. Jump on the Carpet and take a ride down the rapids to find the Shard on a small island.
SHARD OF COWARDICE
To descend in Hythloth: From the exit, descend to Level 7. On Level 7, move South TWICE (through a secret door), West ONCE and UP to Level 6. On Level 6 move West TWICE and Down to Level 7. On Level 7 move South TWICE, East ONCE, South TWICE, then East FOUR TIMES through a secret door. On Level 8 move West THREE TIMES to the Underworld exit. (Mystic Arms are found near the Underworld Exit in Hythloth).
In the Underworld: Carry lots of gems. Go to a clearing due South (as far as you can go on foot). 'BLINK' into the clearing to the West, then go Northwest as far as you can walk and view a gem. 'BLINK' into the clearing to the North. Then go North and 'BLINK' over more mountains. Move West and 'BLINK' across more mountains. Go North and 'BLINK' again. Head Northwest to the clearing, where you'll find the Shard.
The Amulet is located in the Underworld (go through the dungeon Destard, then Southwest, using the Magic Carpet to avoid the poisonous area), among the Graves of Valiant Warriors (near OE GJ). (See Underworld Map).
To Descend Dungeon Destard:
You don't HAVE to enter through the dungeon: just follow the journal of Lord British's last trip in the manual. But you should exit through the dungeon by reversing these directions.
Yell the Word of Power.
From Level 1, head: S - S - E - E - E - E - S - S - E - E - E - E - S - S then descend to Level 2.
From Level 2, head: S - S - E - E - E - E - S - S - E - E then descend (through Level 3) to Level 4.