it was too long ago i'd have to retest in order to see what guard puts you where... [after getting your mark] the easy way is just walk into her room, close the door \ suround \ kill the bitch. if your gifh or vamp open the fight with a melee hit its uncommon to need 2
i assume the second talk she gives normally ends in combat because your rep is too low... did you help the girl goblin get out of the druid camp?