Ghoulie is the colloquial term for corporeal undead. Unfortunately for the residents of Portsmaw, they're really not that uncommon. For reasons unknown, the ground of the region is sour and has a tendency to spawn undead monstrosities. Skeletons and zombies (found in Swords & Wizardry Light) are common all over the region. Thankfully stronger undead, such as Rotaway's Axe Grinders are more rare or typically found in specific locales.
Locales still tell tales of the blizzard that struck the region fifteen years ago. They also speak of Greal Ghames and the horrific atrocities he committed that bleak winter, though they often do so in hushed tones.
Greal had a farm a few hours north of town. The portly man and his meat wagon were a common sight on the Esplanade. Having a decent bit of land and a lot of livestock, he was able to make a good living from butcher work and the people loved his foodstuffs. As he always said his meats wear "a cut above" his competition.
When the blizzard hit, found himself having somewhat of a monopoly. Using a family heirloom, the Hearthfire, he was able to deliver his meats regularly, while others outlying farmers were stuck in their homes. Unfortunately he soon found his stores depleted as few were prepared for nature's fury. Someone or something spoke to Greal and told him that he was surrounded by meat, just waiting to be butchered. His first victims were his farmhands, though he quickly had to dispatch his suspicious wife as well.
If a desperate hunter, Nat Stakeholder hadn't come upon the Ghams farm seeking refuge, the horrific supply of meat might have made it to town. While he was unable to finish him off, the hunter was able to severely wound Greal, before escaping into the woods and back to his home in Willsburg. Stakeholder organized took a regiment of his private guards in Willsburg to the farm but only found a horrific scene... but no Greal.
Greal succumbed to his wounds. Due the heinous nature of his crimes and sour ground of the region he rose as an undead abomination. The monstrosity that was once Greal Ghames is now simply known as the Butcher and occasionally his handiwork is still discovered in the area.
AC 5  HD: 5+2 Special: Immune to sleep, charm Attacks: butcher blades (2d6+2) Move: 9
This magical pendant looks like a small potbelly stove. It allows it's wearer to experience no discomfort from non-magical subzero temperatures and the ability to ignore snow and icy conditions when traveling. If hung on a wagon or similar vehicle it provides the same protection to the vehicle, occupants, and draft animals. Though he no longer has use for it, the pendant still hangs around Greal's neck.
More information of the Portsmaw setting can be found here.