I am not aware of any easy way of killing the leprechaun. He has is really quick and an annoying habit of vanishing away or else teleporting you away.. Spells such as hands of time, face of death don't work and I once managed to cast two meteorstorm, and four firestorm spells at him but he survived that and vanished away.. I found that the best thing to do was run up behind him and give him a massive whack (blessed up weapons, bloodlust, heroic might). As nanaobyte says, the leprechaun quest is completed without killing him.
If you have the quest for the living seed, then the best thing to do is tree surf to the other sea, hang out west of Cet's pyramid and wait for the bark horrors. Killing Oakenmir will only give you one seed and you will need one seed for each quest member...
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