Argh! Talk about too much info! Wasted 15 minutes of my life that I will never get back relying on the coordinates to find this drop.
Here's the quick-n-ez way:
Go to the main room of the main building, where all the NPCs are. Do a FIND on Innkeeper. If you get the "mysterious" forces message, move around until you don't anymore.
There are two innkeepers and between them is a corridor with 6 rooms, 3 on each side. Plus, right upstairs there is another corridor with the same layout of rooms.
Take the stairs behind the innkeeper, go upstairs and the spawn is in the second room on the right. That's UPSTAIRS! The second room on the right DOWNSTAIRS is indeed locked but who cares, it's not the right room!