I had no problems killing the Naga. Here's what I did - going by advice given elsewhere, I had my leader drink Kerielle's potion, then had Lure cast on him. Apparently, the potion weakens/disrupts the Naga's magical effects on its drinker. Next, I cast Bless, Armorplate, Frenzy, Bloodlust, Haste and Heroic Might on everyone, and charged the Naga. She didn't even get to touch anyone. I think the key spell is Haste. If you haste your entire party, you can whack the Naga in uninterrupted succession without her having any chance of retaliation.
I found the High Priestess and her gang much more difficult to deal with.
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