The bandit camp turned out to be a doddle. I snuck into the cave, cleared it, and had a sleep to refresh my spellbook and advance to nighttime. I snuck out, headed to the main tent, buffed in a corner, and talked to the prisoner.

Between all the letters pointing here, and the intel from the captive, I decided an attack on neutrals was justified, so I led with a skull trap. This was less effective than I expected, only one archer died. I really can't remember what I did next, but I suspect I cast emotion. Anyway I easily dispatched everyone, grabbed the loot, and headed outside to finish off the rest.
I started with a blindness to Taugosz, which failed, but it was just to draw their attention anyway. I ducked behind the yurt and stealthed, then watched every single enemy on the entire map collect where I had cast from. Perfect. Moving out of sight, I pulled out my spare cloudkill scroll, and dropped it on them. Also not as effective as I had hoped, but pretty effective nontheless. I finished of the two bandit group leaders, and started searching for Taugosz.
Eventually I headed into the yurt, and found him, along with about 10 archers. I droppped my second skull trap on them, again less than overwhelming, and they were angry, so I tried a glitterdust. Great. Mowed down a couple, but it wore off really quickly, and I was losing HP fast, so I ducked outside, backstabbed the first archer that followed, and meleed the second. I set a trap outside to simplify a repeat of this, and stealthed back in. Another blindness on Taugosz took, so I finished off the archers, and ended with a backstab.
Had a bit of a spending spree, bought the rogue armour and the poison dagger, loads of potions and ammo, scribed a full set of spells, and am still contemplating the claw of whatsisroth. Except I'd have to remove the super-cheesy Dushai's ring. I'll probably remove this anyway when I get boots of speed, but even then I'd rather have a +1 ring than a cursed claw, and the other ring of very many L1 spells never gets removed. Sold my trusty ankheg plate because I have Durlag's bronze plate. Typically I wear the archmagi robe, but the stealth armor & the full plate just give me other options. The cloakwood awaits.