Magtheridon's Lair is the smallest raid of Burning Crusade, containing only one encounter - The Pit Lord Magtheridon himself, kept prisoner by Hellfire Peninsula's Fel Horde. Raid is located in Hellfire Citadel, a large building in the middle of Hellfire Peninsula, at the very bottom next to the summoning stone (46.6, 52.8). 25 players can join the raid, also noteworthy that Attunement is not required to enter the raid. You can get reputation with factions Honor Hold (Alliance) / Thrallmar (Horde) and good gear with 123-125ilvl while passing the raid.
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