When you go on the trip with the dude from Ulgoth's Beard (I believe he's called Roe), you can agree to meet him at DT. Do this, and when you first enter DT, you'll reach the room with normally just one skeleton. Now there are several other tourists there, along with this Roe. Talk to him several times, and eventually the Demon will appear. You can have a fight with him, but he'll flee when he reaches a certain amount of HP. This is what makes it so hard to kill him on the spot.
As I said, I never tried to kill him there, but it should be possible. The question is, do you really want the Helm? And secondly, I don't know if the Soultaker dagger is on the Demon then. It would be a shame if you only had to explore this first room of DT to complete Hurgan Stoneblade's quest!
Petrarcus ap Bhaal.
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