Aerianna,
I've gone back to the library to see what I can dig up. There isn't much information. I knew I've read it there before about Sanctuary being cursed. I've come across where I've read it.
The Corruption of Hammer and Steel: The Lesson of Dunwarren is the main reference for this.
As well Druids of the Dark makes mention of it, but only in reference to the above text.
From my understanding it seems that the Naturalist Faction of Svirfneblin placed a curse on Dunwarren. I am not sure of the nature of the curse, but I know they had a strong dislike of the Machine. From my vague understanding of the Machine this was mostly because in order for the animatrons to function and what not requires the binding of elemental spirits with negative energy. This, of course, would be in addition to the usual druid dislike of such things.
That is the extent of my knowledge on the curse. The existence of the large amount of undead in the deeper bowels of Dunwarren seems to support the fact that negative energy plays a large role in the Machine. Before Earthcaller Aurum passed on in battle against Etorix she revealed that to me and more.
Although she doubted my research that pointed to the Appetite (the being worshiped by the Chosen) being a Beholder Lich, she seemed to be in agreement that the Appetite is literally a god so long as it remains in Dunwarren. The negative energy somehow feeds it, thus effectively making it immortal and immune to destruction.
Earthcaller Aurum was clear that the only way to destroy the Appetite was to dismantle the Machine, but she had held onto a slim hope that there might be another way. I was assisting her in finding another way until our work was interrupted by her foolish and stupid attack on Port Claw.
I must wonder if the city truly is cursed. She never spoke of this curse to me, though she was a deep gnome but she was not a Naturalist.
I believe that a group that may have been connected to the Naturalists established themselves in the Canal Ward some time ago, before the goblins invaded. However I know little of them or even if they survived. However, if they arrived others might exist that we can seek out and learn more from.
If the city is truly cursed...
In the end it may matter little. Cursed or not it seems Sanctuary teeters on the brink of destruction. Even if it survives another will come, and then another until eventually we are unsuccessful in fending off impending doom.
Signed, Kedrick Reynolds