Innie

When I encountered Neray the second time (in the Jhereth Deeps, where you can actually attack her), I went through all of the dialog options and chose to attack her. She (and her bats, and guards), kicked my rear several times, despite trying different strategies, etc. I decided that I would come back at a higher level, loaded a quicksave in which I was just out of her range of sight, and clicked towards the exit. My characters accidentally went in her range of sight, and she started talking to me. This time, though, I noticed that the button to end dialog (the green one in the lower right) was available, so I clicked it before going through any dialog options. She was still hostile and attacked me, but none of her guards or bats appeared, and was much easier to kill. Obviously this isn't the battle as intended, but if you're having difficulty it's an easy way to beat the system.