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The Elder Scrolls III: Morrowind Hints
The Shrine of Valor
1 of 6: This shrine is just inside the Koal Cave, which is at location 28 on the Gnisis map.
2 of 6: You need a piece of Dreugh Wax to activate the shrine. If you don't have one, you could either go buy one from a merchant in the Gnisis Temple or continue on further into the cave to find some Dreughs to kill.
3 of 6: However, don't activate the shrine right away. There's a secret bonus you can get if you do something else first.
4 of 6: A little ways past the shrine is an underwater four-way junction. Go there and head down the NW branch.
5 of 6: You should soon come across a special Dreugh called the Dreugh Warlord.
6 of 6: He's tougher than the average Dreugh, but if you can defeat him, you'll get an enchanted Dreugh cuirass the first time you activate the shrine. Neat, huh?