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CGG is right on as to where to find the digspot, heres an alternate method to locating it however might be easier.. might not be. <shrug>
Go into Kingshead, follow path up to past the first large 'yard' area. Continue straight up path with trees on both sides until you get to the top, whats called the "Town". I then find it easy to simply hug the left side of the 'town' when you go in. There are very few enemy NPCs inbetween you and the brick archway you want this way. Hug the buildings staying left against the building, and you cant miss the brick archway with a short tunnel to a grassy area with trees. That archway is protected by a couple of EITCs, but if you hug the wall like I mentioned, you can slip right past them.
There are usually at least 2 EITC Grunts guarding this area, dig spot as at base of the tree near the 2nd EITC Grunt.
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