Watched a high level kill Zyburr the other day (without aggroing Guard Mandin or Nyzil Bloodforge, either) while hunting skels and goblins at the x-roads with my cleric.. He didn't loot the body, so I waited till I could. Got almost 7 plat, a fine steel scimitar, and a Dwarven Axe off him. When he re-spawned (took a LONG time), he had an axe and a dagger instead of the scimitar. Couldn't use the weapons, but my pally friend sure could!