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The Great Hollow
The Great Hollow is a hidden area in the Blight Town Swamps
full of basilisks, crystal lizards, and mushroom people. It 's full of
loot and leads to the Ash Lake, and area with the Ancient Stone Dragon,
whom gives you a powerful weapon if you slice off its tail. To find the
Great Hollow you must find the giant tree root in the Blight Town Swamps
and go up it. At the top there is a small room with a corpse in it.
Now, the left wall of this room is fake. Hit the fake wall and you'll
find another room with a chest in it. Behind the chest lies another
fake wall. Break that wall as well and you're now in the Great Hollow.
The Drake Sword
Go under the bridge the Red Dragon is guarding in Undead Burg. Kill the two skeletons, then take out your bow. Go into first person mode and aim at the swinging tail of the dragon. Shoot it 25-45 and the Drake Sword will appear in your inventory
Easy Grinding Method For Low Level Players
Go up the ladder from the bonfire in Undead Burg and climb the stairs to the Red Dragon Bridge. Step out, then quickly rush back downstairs. The dragon will unleash his fire onto the enemies, giving you 300 souls. Go down to the bonfire, then repeat the process as desired.
Bypassing The Red Dragon
This is best recommended with a character who has 14 Vitality, 12 Endurance, 16 Strength, 13 Dexterity, and 12 Resistance. Wear the most protective light armor you have.
On the bridge where the Red Dragon is, go to the wall on the left that protects you from the flame. Make sure the dragon has breathed fire at least once, then wait. He will eventually fly down and land on the bridge. When he does this, run underneath his legs. It's likely you'll get burned--if this happens, go to one of the corners and drink a potion. Quickly go inside and light the bonfire that takes you into the Undead Perish.
Note: Doing this will NOT cause the Red Dragon to leave your game.