Tazok isn't inside his tent at all--he only appears if you enter the Bandit Camp in a more "discreet" manner. (I hate spoilers, but just to let you know, there's another way in, not just the "I'm here to kill all you bandits, come and fight me" approach.)

Resist Fear is a Wizard spell that renders your whole party (provided they're in range of the spell) immune to magical fear, such as the Horror spell. It may also restore your Panicked NPCs' morale.

Remove Fear is a Priest spell that is only useful when cast AFTER a Horror--not before. It will erase the effects of magical fear, but does not protect characters from further attacks.

I just did that part last night, and won the fight on the first try. My tank swilled a potion of Cloud Giant strength and piled into the hobgoblins and gnoll, and Branwen blocked for Imoen and Kivan as they fired arrows at the mage and Dynaheir pumped magic missiles at him over and over and over. He kept trying to cast apocalyptic spells, and all three times the magic effect was just appearing when the next volley of missiles hit him. I don't remember if the archers were hitting, but he went down after the third volley of missiles.

If I had lost, I would have tried about the same tactics but with arrows of ice and arrows of wounding and maybe darts of stunning instead of the missiles.

Wonder if I can finish Cloakwood tonight.
Rikter

If you have Kivan in your party then what I always do is have him go into the shadows, smuggle him in next to that hobgoblin archer start beating on him just before I send the rest of the others in to kill the others. I usually send everyone else after the mage, just because I dislike mages and enjoy watching them get bludged to death :D