I'm in the dungeon "Broken Oar Grotto", after having been sent here by what I'm assuming is one of those generic, "Radiant Story" quests (I could be wrong about that). After dispatching the bandit leader, I have found "Hargar's Journal", which speaks of a hidden stash in a sunken boat. I am assuming that the boat is somewhere under the water here in the dungeon, but I cannot for the life of me find it. Can anyone point me in the right direction? Thank you.

Its the one only 6 inches sunk right there below where you get the journal. Jump down and the chest is on the deck not even fully submerged.

It's not really "sunken." It's half in/half out of the water just beside the big wooden structure at the end of the dungeon. I was there last night as part of a quest and the contents of the stash weren't very impressive.

Haha, thanks for that folks! I was looking for a boat on the bottom of the cave floor- I'd have been there al day. The contents might not be all that impressive to some, but to a level 8 Conjurer, the two Conjuration items that I found will come in handy.

The real question is: how'd all those damn ships get in there in the first place?

Lol, I got a lousy Elven Helmet (Khajiit don't where head gear) and 86 Septums lol.

Anyway, the Grotto was the Black Bloods base Camp where they would dock their boats until an ambush. However (listening to the patroling bandits) A cave-in happened trapping their ships and crippling the Black Bloods ability to do Sea based attacks until they made a "Big Score" to buy more ships. That "score" was the basis of that quest line.

Ah-ha- thanks for the info! I was too busy faffing about when I entered the cave, and I didn't listen to the bandits talking at the start. Now I know!

Oh yeah... and so loot is levelled and particular to what kind of character you are?!

It's random to some extent. I and my BF are playing as mages around the same level and he can get something entirely different than me out of the same chest.

still not seeing it. I must be stupid. i found icerunner chest