This fellow is the source of those hideous looking baby blue robes that so many casters insist on wearing for the stats on it. He is guarded by the Guardian, a level 40 paladin. While he is not particularily difficult, he spawns very very slowly (at about 6 hour intervals).
He is also the bearer of the (unfinished) Quest for the Tome of Ages.
You say, 'Hail, Oracle of K`Arnon'
Oracle of K`Arnon says 'Greetings, _____, I am the Oracle of K'Arnon. Do you quest for [knowledge] yourself, or do you offer that which I [seek]?
You say, 'What knowledge?'
Oracle of K`Arnon says 'I have lived long and have insight into many matters, yet I despise charity. To learn from me, you must first bring me that which I [seek].
You say, 'What do you seek?'
Oracle of K`Arnon says 'I seek knowledge, which is superior to all things. And no knowledge is greater than that which is contained within the [Tome of Ages].