I have been wondering around the asylum, but can't find the room with Scabban. What am I missing? Thanks,

To talk to scabban you need to jump across a piece of fallen walkway. The best way is to get at an angle that will allow you to run before you jump. It is really a timing thing.

From the dock area swim down the passageway get out of the water on the first left just before a bridge. just after getting out of the water go left and straight you will be headed up a slope. just keep following the slope up until you meet mister green saggy pants (scabban)