(Hrm, should have done the run for the chest with [possible] Excalibur! Would have been the way to go. LOL)
Anyway - what I did - walked in, to where I could see her, but I was still behind some rocks. Then I engaged her myself (by using the sword icon down at the bottom)
My mage summoned his highest elemental, everyone else had canned elementals (thanks Crock!)
So I unleashed 7 or 8 (Vi was gone, but I think I had RFS-81)... let the elementals go to town on her. They'd often miss, but by the same token, she'd often miss them.
From the back, I'd cast Armormelt on her, superman on the elementals, guardian shield on the elementals, all at their highest. After a bit of letting the elementals take her down, did another round of guardian shield on myself, with super man on the tanks, and marched in.
I remember it took me two tries to beat her, but once I found this method it worked each time.
I'd beat her, check for Excalibur and reload.
I did this 6 times before finally deciding Excalibur wasn't meant to be mine, and just pressed on.