GameBanshee Forums

[QUOTE=swcarter]I think both merchants are among the people you see outside the gate when you do the balverine quest. If they get killed by balverines, then you have to do without them.

SWC[/QUOTE]

My current game doesn't have the tattoo-ist, but I didn't let any of the people outside the gate get ...

Yes, you can get the guards to kill lady grey by getting them to try and kill you. I don't think you can kill a regular villager with just your fists. I remember pummeling the beardy-baldy quest guy in the Bowerstone slums for quite a while when I first got the game...