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The Elder Scrolls IV: Oblivion Hints
Arena District Notes
1 of 3: It's possible to pick open the lockbox that's on the table next to where Hundolin stands, but it'll require a very high Security skill or the Skeleton Key from Nocturnal's Daedric Shrine Quest. Also, do it at night and sneak around to a spot where a guard won't see you. You'll get a one-time prize of 500 gold from the chest.
2 of 3: To get a unique Blade skill book and some magic bracers that boost your Hand to Hand skill, find the area near the SE corner of the Arena District where Branwen and Saliith are camped out and pick open their locked chest. (Or pickpocket the key to the chest off Branwen when she's sleeping.)
3 of 3: You can also get a permanent +5 to your Hand to Hand skill by standing near the mat that Branwen and Saliith spar on and watching them long enough.