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Gold and Red Letters
The Letters themselfs are found on most of the low level critters found along the roadways. Red are droped more often then the Gold. The first step is to get a "Town Stamp" for your letter. This is done by going into dungens found by Starter towns. The Stamp will be found right by the Portal-in spot so use your [ ] keys to find seeing as thy are quite small. You can only pick up one stamp from each dungen in a 24hr period. Hear is a list of the dungens you can find "Town Stamps" in.
All Dungens have 1-20 LvL Restrictions
Al-Arqas = Abandond Shops Portal: ( 32.4 S, 12.7 E )
Holtburg = Cave of Alabree Portal: ( 42.3 N, 29.3 E )
Lytelthorpe = Lost Distillery Portal: ( 0.7 S, 51.2 E )
Nanto = Water Temple Portal: ( 52.1 S, 80.3 E )
Rithwic = Ols Warehouse Portal: ( 8.7 N, 58.1 E )
Samsur = Musansayns Vaults Portal: ( 1.0 S, 18.6 E )
Shoushi = Shreth Hive: ( 32.5 S, 71.0 E )
Yanshi = Deserted Desert Portal: ( 16.0 S, 47.2 E )
Yaraq = Sea Temple Catacombs Portal: ( 20.2 S, 4.4 W )
Now you can take your Stamped Letter and hand them into the different town Society Agents found in the same towns you can get for stamps. Each Agent will give you something different for your letters. Here is a table to help you find the items your looking for.