Okaay...let me get this straight...you want to spare the assassin rats, and kill the innocent Leprechaun, eh? LOL!
Seriously, it's best not to kill the Leprechaun. When I did (yes, I did the first time through; I've learned better!) I never could get credit for the guild quest, even though I had the quest item (Stone of Clover) in my character's inventory. Apparently if the lep' is dead, the guild won't give you credit for it. He is worth pretty good XP though (64000+ XP per member of a 6-char party). He's also tough as heck to kill, what with him stoning, poisoning, teleporting your characters and making them insane...plus he has an annoying tendency to vanish. I did kill him the first time, but it took about 40 minutes.
-Sazerac
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