If you've already killed two dragons then this quest might be a bit easy for you as the game probably presupposes you will finish it early on.
No, Hendak killing the slaver guy (I forgot his name but it's definitely not Leviathan....wait I got it Lehtinan) won't screw up the quest as that's what supposed to happen. Just watch Hendak kill the guy, then talk to Hendak and he'll thank you for your help. Don't forget to loot the corpse for some gems. The sewer quest is separate from this, if you want the talking 2h sword I suggest you do it. Oh, and about traps: just detect traps all the time when you're not in a battle. (or let a druid/cleric/high level ranger cast find traps)
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