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So my party and I walk into the Nashkel Inn and Neira, for whatever reason is very unhappy to see us. She tries to and many times succeeds in killing us. I finally take her out and collect the goodies and now those inside want nothing to do with us. In fact when we enter and if we stay longer than a few seconds someone, usually Imoen decides to launch an arrow at someone.

Why don't they like us anymore?

I believe this has happened to me once before and I could only solve it by reloading to an earlier save. I never figured out what it was, but we can speculate!

Striking first, even though the target is hostile, accidentally AoE'ing an innocent or just striking too close to someone. It's a weird bug in any case. Good luck.

One of the spells she casts is rigid thinking, which is very much like confusion.
It's likely that one of your party attacked a bystander while under the influence of the spell, and that's why the rest of the patrons are hostile towards you.

Neira is not at all unhappy to see you and is actually delighted to see you, being a bounty hunter. There are a number of bounty hunters in the game all of whom are out to get you just for the reward. If you cast a hostile spell in an area where there are neutrals, the target might save against the spell and it will then affect others who might then become hostile. They don't seem to mind entangle, but might object to others such as confusion, domination etc.
SPOILER (Highlight to read)

I tend to deal with Neira like I do with many of the tougher enemies by using just my thief to fight. After entering and the spells begin to be cast, do a sharp exit. Enter with just your thief. Backstab, Exit, Hide. Repeat until you kill the opponent. If your backstab fails, exit just the same before any spells are cast on you. You don't actually need to enter the inn at all. If you need to sleep, go to the carnival. I haven't had my sleep disturbed by enemies once in that area. There are a few places that are always safe to sleep in, and others where it is extremely dangerous to do that. I won't spoil the game for you by saying which is which, you will find out by experience.

Backstabbing is cheesy, just fire lots of arrows at her when the combat begins and hope that her spellcasting is interrupted

Curry wrote:Backstabbing is cheesy, just fire lots of arrows at her when the combat begins and hope that her spellcasting is interrupted

I would agree that if you play with a large party, backstabbing is a bit cheesy, but I prefer to play with a small party of one or sometimes two. In that case your method doesn't work as there is less chance of her having her spell interupted, and if you think about it, isn't backstabbing what thieves do?
In the end , it is a matter of gameplaying style. I like to roleplay. If I play a thief, I steal, backstab etc. If I play a paladin, I play as a paladin. If I play a non-violent person, I avoid killing. There are a lot of ways of playing the game, all equally valid, which is why it has such lasting appeal.