I just finished that one, and found a cute (or maybe cheesy <img src="/ubbthreads/images/graemlins/biggrin.gif" alt="" />) survivor (with mage abilities) way to win it fairly easily.
Before getting to Josie, I killed everything near the door. Then went into stealth mode and moved forward. Josie then said hello, but couldn't find me. Staying in stealth mode, and drinking stamina and restoration potions as needed, cast hellspikes (level 5) at her--move away in stealth when she gets too close, hunt her down in stealth when she get too far away. About all she seemed able to do was send the occasional deathknight after me--they are better at finding your character than she seems to be. I would pause to get rid of these things whenever they showed up, then return to Josie. Took a surprizingly long time, but worked.