The leprechaun is really difficult to pin down especially with his vanishing tricks.. After replaying the game many times, I don't have a foolproof method other than waiting at one of the junctions to increase the chance of 'catching him' and using defensive spells such as haste/heroic might/bloodlust and trying to smack the leprechaun as he comes by. sometimes, he hangs around to fight and then he's easy meat..
btw: you don't need to kill the leprechaun for the quest and since the exp is also not that much (around 200,000), you might want to avoid the frustration of trying to catch him..
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