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One warning. Pre-patch, this is a fairly bugged quest in that once you accept it, you cannot turn it down and still end it properly without killing everyone in the Boatmens' Tavern, including the one you were originally sent to assassinate. However, if you've got a character with a fair Diplomacy skill, you can complete the quest by killing Lodriss in private after it's accepted.
The reason that this quest is last is because it sets off all the pirates in Nulb against you should you attack Lodriss in the bar, effectively eliminating two quests if you haven't yet done them, "A Pirate's Life" and "Grud's Fish Story." That is, unless you use the alternative method of sneaking up to those characters and initiating dialogue before they see you.
The players involved are Lodriss (who's selling some decent items) at #2 and Skole at #5 (also with a few decent items for sale). Talk to Skole using a character with the Intimidate skill, and tell him you're looking for danger. He'll then ask you if you're interested in killing Lodriss, and give you a gem if you accept, and possibly a Shield +2 (both of which you can pickpocket). Next, if you use a character with the Diplomacy skill, you can convince her to go out for a walk, and after a brief fade out/in, she'll not be there and the quest will be complete. Alternatively, you can tell Lodriss of Skole's deception, and she'll ask you to prove it. If you immediately choose the "what's it worth to you" option, you can eventually get 100gp from her, and show her the gem Skole gave you as proof. Alternatively, she may ask to keep the gem. If you refuse, you'll get into a fight with the whole bar excluding Skole and his tough goon nearby at #4.
When you've settled with Lodriss, unless you've killed her the quest will not be completed (pre-patch). Go over to Skole and tell him either of your double-cross or of your killing of Lodriss (which he should have seen being there himself). If you double-cross Skole and tell him about it afterward, you'll have the whole Tavern after you, which can be both profitable and rewarding experience wise. That will definitely complete the quest, but be warned that if you kill the pirates in the Tavern, you'll earn a bad reputation in town and the other pirates including Grud at #11 and Bertram at #10 will attack you on sight.
1) EXIT: to Nulb #12
2) Lodriss, Owner & Merchant: Along with being your mark, she has some valuable items for sale.
4) Skole's Goon: If you get in a fight during this quest and he's involved, focus on taking him down first. He can hit hard (though tends to miss) and had more hit points than the others here.
5) Skole, Schemer: Begin this quest by talking to Skole and tell him you're seeking danger using a character with the Intimidate skill.