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Background
Sygius Destrus will give you this quest when you talk to him near
Cathalon (#1).
Walkthrough
Sygius will tell you about the
Enclave, "the promised land for all necromancers," and about its leader, the Flame. He'll worry that the necromancers might become too powerful under the Flame, and so he'll ask you to track down the location of the
Enclave and to kill the Flame.
You'll find the
Enclave far to the south (#2). The Flame won't be in evidence when you first arrive; to set up a meeting, you'll have to prove your loyalty to the Necromancers by completing two quests for Ito Tamaga and Xavo Wellmark (see the
Enclave overview page for information on these quests).
When the Flame finally appears, you'll just need to kill her. If you simply attack her, then the entire town will come to her aid, and you'll have to kill everybody. But if you talk to her first and call her mad, then you'll be able to fight her without anybody else noticing, and the people of the town will react to you just as if nothing had happened.
When you return to Sygius after completing the job, he'll reward you with absolutely nothing. This might be a bug.
1 - Sygius Destrus
2 - The Enclave