When she becomes a big white cloud it means you are blind, and can not target her directly. The warrior's spin attack and area effect spells will still work when you are blind, though. Alternately, you can use a shadow potion to wait for the effects of the spell to wear off.
Kroxy or the orc at the start of the wastelands can sell scorpion traps.
If you have not already finished off the other Black Ring members, you can leave Josephine for now, and come back at a higher level.
Chasing Josie... techniques for defeating Josephine
