Have you only Mindread Ursula or have you also killed her?
If I remember it good, you can have the Earrings after you kill her, but it's for sure a hard battle, but it's great and it's the best thing to keep your nerves calm ...
There're L39 enemies. I go there earlier, but I was a little too weak, so I came back later to kill Ursula when I was level 39.
Wish you Good Luck &
and don't get stuck !