I'm not sure if the storyline will suggest any changes, but as you have a lot of good material here I'll just launch right in to some comments.
MrBigB wrote:A - The hero's wake in their cells unarmed and striped of armor. Doors are locked. Hero's can attempt to pick the lock using a toolkit (if purchased) or Dwarf may use disarm ability to unlock the door.
Unarmed heros fight bare handed:

A2, D1

A1, D2

A1, D1

A0 (spells only), D1
The Dwarf is enough to unlock a pair of doors if you allow repeats, so just drop the toolkit note. I think you should note that the players may choose which two Heroes are in which rooms.
I'm with trying to use the unarmed rules already provided, unfortunately that leaves a large discrepancy between EU and NA unarmed Heroes. A single amalgamation would suit this Quest, as it must accomodate both rulesets. I'd suggest using the EU numbers on the Character Boards. That sets the Barbarian at 3AD/2DD, the Dwarf at 2AD/2DD, the Elf at 2AD/2DD, and the Wizard at 1AD/2DD. However, the idea that a Hero can attack as effectively unarmed as with a weapon hurts theme. Therefore, I say let monsters count white shields in defense against unarmed Heroes. This halves the effect of their unarmed attacks, brings the Heroes' average AD down to the NA standard 1AD, and gives meaning to recovering their starting equipment.
Upon their escape from confinement, two of the three closest doors they may choose before regaining their equipment are a tough and very tough fight. Maybe you could restrict their initial path to avoid one or two of these. Others may disagree, I'm being conservative here. Maybe you favor a retreating start until the right room is found?
MrBigB wrote:D - Opening hidden door opens both hidden side of the small corridor to next room. Once the first hero passes through the corridor they cut off from the group by falling rocks.
You could get away with just the first secret door and the falling block trap. Otherwise, things can get complicated. If you use secret doors on both sides of the falling block trap, you'll need to mention a blocked square tile is placed at the falling block location when the room is entered first from the east secret door--if the falling block hasn't already been sprung.
Also, the NA and EU falling block trap rules behave a bit differently than your Quest notes. This is fine, but as in Quest 13 of the Quest Booklet I'd add for clarity: "
The rules for this falling block trap are different. Once the first Hero passes...."
MrBigB wrote:F - This hidden door opens only from the tomb side.
G -healing potion found on the shelf.
Rooms only have one note each, so Notes F and G should be combined:
The western secret door may only be opened from room E. The first
Hero to search for treasure will find a healing potion on a shelf of
the bookcase that restores up to 4 lost Body Points.
The 2 Chaos Warriors at the exit are going to make for a drawn out battle. Why not place them in the room just to the east, so all the Heroes can get in on the action? In that case, you'd need to block off the exit corridor and rerout the Heroes into the northeastern quadrant.