Murcaily can be found in Tai Bwo Wannai, right next to the gate to the hardwood grove. He is not visible until you have completed the Jungle Potion quest, although he will speak to you if you try to enter the grove without paying.
The hardwood grove area has 9 Teak trees and 4 Mahogany trees. The grove contains several level 8 snakes which can make woodcutting for pures awkward. However, this does not affect the majority of players. There are four hatchets lying on the floor, two bronze and two iron, which are not generally useful for the players who use the grove for experience, as cutting teak or mahogany is well above the requirement for using a bronze or iron hatchet for woodcutting.