spoilers requested....

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So, I'm in the temple with the emphatic demon guy and I don't know what to do. I found a walkthrough that said I needed to cast heal on him to kill him, and then I could talk to some other guy and move on in this quest. but nothing happens when I do that. I have fought it to the point where it just disappears, but no one appears. I don't get any useful dialogue options talking to the diseased ones outside. I'm stuck, help please?

Load from entering the temple an do NOT attack it (also disable AI to prevent your party from auto-attacking).
Then either take your best healer and cast a good healing spell (like Heal Serious or Critical Wounds or even better Lay on Hands, don't bother with light wounds).
If you have no proper spells memorized go a little further there are two scrolls of serious healing stashed.
Do NOT attack, just wait, after 2 or 3 seconds the demo should dissolve and the avatar should appear.

<span style="color: lightblue">The trick to it is that only Cure spells work (Cure Light Wounds, Cure Medium Wounds, Cure Serios Wounds, Cure Critical Wounds, Lay on Hands) - Heal and Lesser/Greater Restoration often do not, nor does anything that would normally deal damage to an opponent.