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After freeing the Dremora in the Dark Midden Under the Winterhold College I was given a vague map of where the Dremora's treasure was located. (Somewhere near Winterhold) After searching near the landmarks shown on the map, I still can't find the right spot where the treasure is hidden. Can someone point me in the right direction?

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Have you set Velehk free? – I Phantasm I Nov 23 '11 at 4:16
@IPhantasmI Yes. – m.n.wiser Nov 24 '11 at 1:55
up vote 2 down vote accepted

If you go to pilgrims trench by winter hold, there should be an island with a talos statue on it. Stand in front of it on the beach and your loot will appear.

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