Nadarin can be found in a Warehouse located just south of Gantolandan's Home in Southeast Baldur's Gate. He gives you the Nadarin and the Basilisk side quest. To complete the side quest go to South Baldur's Gate and enter the northern warehouse. Make sure to have a Protection From Petrification scroll or a Potion of Mirrored Eyes to prevent your characters from being turned to stone. You will gain 1,300 XP and, depending on your NPC reaction, you will get either 1,800 
or 500 and Boots of Stealth as a reward. An NPC reaction of 15 or above gets you the 1,800 while an NPC reaction below that gets you the 500 and the Boots of Stealth.
In the Enhanced Edition, a high reaction gets you the 500 and the boots while a low reaction only gets you the 500 . You can also pickpocket the Boots of Stealth off of him.
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