Are you talking about the Underdark? If so, yes this demon is a tough one. I used a lot of pierce magic, lower resistance, etc. on him. Then blast him with your mages as many offensive spells you got on ya. You need +3 weapons for your fighters to work on him as well. Anything less doesn't work on him. And he casts some kind of wierd fear magic. I cast remove fear on my parties, and when I ran out of those spells, I just let the party members meander around. They usually stayed away from the demon so stayed safe. I finally won the battle, but two people in my party croaked. At the end of my battle, I had only two people (my main character and Minsc)left with the others dead or wandering around in fear. It was so close! Minsc was already pretty damaged and I was out of any healing spells or potions. But in the very end, Minsc made "Minsc meat" out of him!
Basically, I would suggest anything that resists fear will be very helpful in this battle. Hope this helps.
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