i finally was able to KILL that little guy and it was easy!!!! he was walking towards the trees and went to turn around and i was right their. this time he just kept walking into me while i hacked away at him! this makes for a lot less aggrevation!the funny thing is i have his stick as proof i killed him, but i'm not getting credit for it with the thief guild?

Hi, Gandolph

I killed the Leprechaun to and had the same problem, You must go through the temple quest in that area, to get to the other side, after you talk to Kerab leave her temple swim to the surface, look around you'll find two chests and a big crook pot with no gold in it, HEHEHE.