In "classic" Baldur's Gate this quest is referred to as Zhurlong's Boots. After talking to the thief Zhurlong, in the Burning Wizard, we learn that he was ironically mugged of his Boots of Stealth .They were taken from him by a hobgoblin in Area South of Beregost (1900, 2670). You can kill Zhurlong without losing reputation, as a result many players choose to complete the side quest for the experience, then kill Zhurlong to retrieve the valuable Boots of Stealth. Boots can be also obtained in the area of Ulcaster from a Hobgoblin (2050, 2630) but only in original BG.