If your looking for a fairly good place to lvl or looking for kobald parts, teeth, ect, there is a whole cave of them through the warrens, near paineel & Erudin. When you kill the kobalds you get good faction for both of the cities and if you can lvl up off them it's a great place. They drop molars on 1 of every 2 drops. I go there for the faction.
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http://www.magelo.com/eq_view_profile.html?num=744646 ---------------- ShadowSoldier Antonius Bayle
They drop Bandages, Belt Pouches, Large Bags, Rations, Small Bags, Backpacks, Mead, Short Beer, Ale, Rusty Daggers, and supposedly, if I'm correct, Large Boxes and Small Boxes. So, yes, they do drop alot of items for a level one creature indeed.
You receive negative faction with the Kobolds for slaying them. They drop bandages, belt pouches, large bags, a certain type of beer, rations, small bags, backpacks, silver, and copper. I have heard of high level Kobolds near the lavastorm mountains, but I'm not sure.
Kobold Runts, at least in Steamfont, will occasionally drop containers: bags, boxes even backpacks. Really nice loot for a level one mob. The faction hit is negative faction with Kobold.