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The alliance quest brings you to westfall after talking to the mi:7 people or whatever they are called in stormwind. When you go to westfall and find the tower you must climb, take off all of your armor and clothes. You are about to die a whole bunch, so just have 1 dagger equipped into your main.
First, steal from the lvl 24 zombies walking around the tower. You should receive a key.
Next, you need to get up the tower. Hit up your flee and try to run past the guards, because sneaking will be no use. Respawn as high up the tower as you can, eventually get to the top. When you are up there, use Sap on the elite guy guarding the treasure chest, then open the treasure chest.
Going to have to disagree with you here. I did the quest at 21 and only died twice, both from failed pick pockets before I knew the guys leash.
If you fail the pickpocket dash to the river asap, he will leash as soon as you hit the water. Also time your pick pocket as he makes his turn on his path, this will give you ample time to follow him before he turns again.
The sneak worked fine in the tower for me, just have to pay attention to the pathing and not lose your patience. There are 2 guards you have to worry about, watch the conversation text between them once you are in the bottom of the tower. If you tuck yourself in stealth up to the corner of the stairs on your left as you face in you will see one of them path to the right side stairs, scoot up the left side stairs and watch the pathing on the other. He will move to the right side of tower a bit and you can make it to the center stairwell without them even turning in your direction. As soon as you are up top, go the long way around to the back of the elite, get yourself at max sap range and slug him, turn quickly to your left and pick lock the chest. If you are positioned right you wont even have to move to pick the chest, grab your item, hit flee and run like the wind out of the tower and jump in the river to clear agro.
If you happen to miss the sap on the elite, just do the flee and run to the river trick and try again.