Good strategy, Hank. One exception to the last item would be:
SPOILER
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Merchants in Ust Natha - kill (along with everyone else) just before leaving the City for the last time.
There used to be a walkthrough (including an "evil" one, in case Hank's advice isn't enough guidance) at the Sorcerer's Place (
http://www.sorcerers.net/Games/BG2/index.php). Having never used it, I can't vouch for it.