So I got the quest form the holy order etc. proceeded to house in docks, got attacked by 4 assasins in house, killed 1 downstairs, then 2 upstairs, then one downstairs (total 4). Tyrania justs keeps telling me to look for more downstairs, I cast true seeing etc, nada downstairs, I leave get my black dragon scale armour made, camp, check with Tyrania still same answer, go to temple district do the house down by the Holy order (good fight there), rest for 8 hours, go back to Tyrania same answer "Don't just stand there, check for more downstairs"

WTF?

replying so it gets bumped, but if anyone has had this same problem or knows how to fix it then pls help me out.

as it is, i am ignoring the quest for now, but it stops any future quests form the knights.

I had this same problem. It is apparently very rare. This worked for me. After you kill the two or so assasins upstairs, talk to tyrania. Then go downstairs like this. After you click on the stairs to go downstairs, DO NOTHING. Don't move, pick anything up, etc. After standing there for a couple of seconds, another event is triggered. re-reply to let me know what happens.

I do it this way:
1) save before entering the house
2) REMAIN downstairs and DO NOTHING
3) everytime the no-good miss shows up I tell her to go upstairs AT ONCE
4) once Hendak arrives, I cast detect evil as soon as I get a chance.
5) If he's good, tell him you'll fetch the girl at once.[NOTE: if he's bad, sometimes nothing seems to happen. That's when I reload.]
I know this is no proper answer but it can save you tons of anger if you simply reload the game if the guy is bad.

no when the girls godparent arrives. Ask for his identity!Demand for his identity remember nobody messes with u
then ask him to wait for you
then ask the girl if he can identify the man if she sees it, she will say she doesnt
so what will you do?
being a paladin u can detect evil and identify if the man is lying
u now can cast detect evil and it will reflect that the man is evil and talk to him before whacking him. He will say how the hell did u know?
after killing him talk to the girl again and she will tell you to get back to the order
go to the order to get ur reward. nobody lies with a paladin

You know, I am having the same problem and I tried the stairs thing; it didn't work. The only thing is, I have 2 Tyranias! Has this happened to anyone else?

It just gets wierder.