how the heck do i kill pedro in the sewers under the merchants town? or am i even supposed to?

You are suppose to kill him. What level / class are you? If you are a warrior you can drink a shadow potion and use your spin attack near, but not directly on, him. Survivor; use scorpions, or sneak / ranged magic attack to remain hidden. Mage; maybe Curse, then Freeze, Blind, Hell Spikes..... Poison Weapon/Skin/Cloud/Arrow and a strategic retreat may work, possibly using one of the curse skills if his poison resistance is high.... A bow my help as well, if you are having problems melee....

when i try to attack pedro...i cant attack!!! help!!!

Did you get the quest to find the supply depot? Get the hint from Tingalf that the depot was nearby, under his feet? When you first go down the sewer from the Ars Magicana entrance and take a few steps east, there should be a short cut scene where Pedro asks you what you are doing there. Then, after a short conversation, he orders everyone to attack you. If you found him without getting the quest by going down a different sewer entrance, that could be the problem. If so, ignore him until you get the quest. If not it might be a problem with the cut scene.

just one tip: dont kill him before you got the quest from the merchant to find the hidden market!! othewise you'll scruw the quest up.

btw freeze and poison are very good killers <img src="/ubbthreads/images/graemlins/winkwink.gif" alt="" />

Acj's problem is that Pedro is frozen in place after the cut scene when you first enter the Ars Magicana sewer, and can not be targeted with weapons or spells.

BTW Acj, is Pedro still green on your mini-map, or red? If you try area effect spells that do not require a target, like Poison Cloud / Hell Spikes / Deadly Disks, or the warrior's spin attack (if you are a warrior), does he take any damage?